The sides couldn't reach a deal, but they intend to continue talks even with Donald back in uniform, the Rams announced.
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Donald has not received a new contract, but the two sides will keep working toward one, the source told Schefter. Donald has 163 tackles and 28 sacks through his first three NFL seasons, which is why he's considered among the best interior linemen in the league.
Donald is seeking a deal that would make him the NFL's highest-paid defensive player.
But as the preseason wore on, Donald gave no public indication that he would report.
Donald missed the Rams' entire training camp under new defensive coordinator Wade Phillips, who is eager to plug Donald into the center of his 3-4 defense. "But in the meantime we've got to get ready to play a football game and we know the Colts are getting ready as well".
Tanzel Smart, a rookie sixth-round pick out of Tulane, is expected to start in Donald's place Sunday against the Colts.