From a M-1 Global Press Release:
"Since the cancellation (of "Affliction: Trilogy"), there has been a great deal of speculation regarding Fedor and M-1. On Wednesday, the media and fans will be able to hear what's going on with Fedor from the man himself.
"Of course, it still doesn't imply we are ready to accept any conditions [the UFC] will throw at us. We want to talk to the UFC about having Fedor compete against some of their fighters, but only within the framework of co-promotional efforts with M-1 Global."
"Emelianenko, 30-1, is perceived by many within the industry to be a free agent and it is believed he is being courted by every major MMA promotion in the world."
It seems quite clear that as long as Fedor is managed by Vadim Finkelstein, aka the Russian Don King, that there will be no softening of the demands that have heretofore kept the world's #1 heavyweight MMA fighter out of the world's #1 MMA organization.
From the L.A. Times blog:
A long-awaited agreement between the Ultimate Fighting Championship and the man considered the world's best mixed martial arts fighter, Fedor Emelianenko, is expected to be announced by UFC President Dana White on Friday, a source with information about the negotiations told The Times today.
The source, who asked not to be identified because he's not authorized to speak publicly about the dealings, called negotiations between the UFC and Fedor "very civil" just days after Fedor's scheduled Affliction Trilogy fight Saturday against Josh Barnett was canceled.