AFL.com.au understands Judd's management is trying to avoid going through a formal grievance tribunal hearing that could result in a win or loss scenario in favour of one side or the other.
In November, AFL operations manager Adrian Anderson informed Carlton that Judd's deal with Visy, believed to be worth as much as $250,000 a season, would have to be included in the salary cap from 2013.
With Anderson vacating the role last month, new discussions are advancing and it now appears the most likely outcome is a negotiated deal.
The 29-year-old's six-year contract runs out at the end of this season.
The League, while confirming the talks, would not be drawn on how the discussions are progressing.
"I can confirm that I met with the AFL yesterday," Connors told AFL.com.au on Wednesday before declining to comment further.
Carlton opted not to comment on the progress of the talks.
There is no fixed timeframe for a resolution, although it's likely before the beginning of the season.
Matt Thompson is a reporter for AFL Media. Follow him on Twitter @MattThompsonAFL
