PITTSBURGH -- The Pittsburgh Penguins said they've reached an impasse in negotiations for a new arena and will "aggressively explore" options to move to another city.

The Pens sent a letter to Gov. Ed Rendell, Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl, notifying the politicians of the team's intentions.

"Unfortunately, we still don't have a deal and are faced with mounting uncertainty that an agreement can be reached in a time frame that is realistic for our organization," the letter said. "Therefore, we have no choice but to declare an impasse and to notify NHL commissioner Gary Bettman that we will aggressively explore relocation."

Onorato said he was surprised to receive the letter Monday afternoon after it appeared that negotiations were close to being complete.

The letter outlined what the Penguins would have paid under Plan B terms. The team would have contributed a total of $4 million a year over 30 years. They also would have absorbed any cost overruns for the construction of a new arena.

The letter also mentioned how Kansas City greeted team officials with open arms during a visit to the new Sprint Center. It said terms of the arena deal offered by Kansas City -- which includes free rent -- are much more favorable.

Rendell said he has not seen the Pens' letter yet. Ravenstahl said he is also surprised by it.

"I believe this is a very interesting development," Kansas City Mayor Kay Barnes said. "AEG (Anschutz Entertainment Group) has put a very attractive offer on the table to the Penguins and I know AEG will aggressively pursue this opportunity."

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