Two sources said Wednesday that the CFL continues to negotiate with an Ottawa group headed up by Jeff Hunt, the owner of the OHL’s Ottawa 67s. Neither source would confirm a report in a national newspaper on Wednesday that a deal to award Hunt’s group a conditional expansion franchise for 2010 was close, but each agreed that talks have progressed very well since Hunt confirmed in September he was heading up a group of local investors that was interested in a CFL expansion franchise.

Hunt’s group also includes three high-profile Ottawa businessmen: Roger Greenberg, chairman and CEO of Minto Developments: John Ruddy, the president of Trinity Development Group; and William Shenkman, chairman of Shenkman Corp., another local property development company.

Hunt didn’t immediately return a telephone message Wednesday.

CFL spokesman Jamie Dykstra said the league had no comment on the nature of its negotiations with the Ottawa group.

This marks Hunt’s second attempt to land a CFL franchise for Ottawa. Last year, Hunt was part of the Golden Gate Capital group that was regarded as the front-runner among three bids to land a CFL expansion franchise for Ottawa. But Golden Gate was forced to withdraw from the bidding after a prominent group member was diagnosed with intestinal cancer.

One major hurdle still remaining for Hunt and his partners, though, is a stadium. Last year, the city of Ottawa recommended the lower tier of the south-side stands at Frank Clair Stadium be demolished due to structural concerns. Hunt’s group has reportedly been working with civic officials on a redevelopment plan for Lansdowne Park, where is where Frank Clair Stadium is located.

Ottawa major Larry O’Brien didn’t immediately return a telephone message Wednesday.

The two sources said while Hunt and the CFL still have some matters to attend to before reaching an agreement, they’re both confident the two sides will ultimately secure a deal that will see the league formally announce a return to the Canadian capital within the next few weeks.

This would mark the CFL’s third time around in Ottawa.

The Ottawa Rough Riders enjoyed a long and storied history in Ottawa. Formed in 1876, the franchise captured nine Grey Cups, including three between 1960 and 1970.

But years of questionable ownership finally caught up to the franchise, which ceased operations following the ‘96 season. The CFL returned in 2002, this time as the Renegades.

The Renegades began amid much fanfare in Ottawa, however it wasn’t long before the club began losing millions amid ownership questions. Bernie Glieberman, a Detroit businessman and former owner of the Rough Riders, came aboard with co-owner Bill Smith but the two walked away from the club rather than cover a projected $6-million operating loss, forcing the league to mothball the franchise in 2006.

The Renegades players were then allocated for a CFL dispersal draft. Quarterback Kerry Joseph was selected first overall by the Saskatchewan Roughriders. Last season, Joseph captured the CFL’s outstanding player award (the first Rider to do so since ‘76) and led Saskatchewan to the Grey Cup title, just the club’s third ever and first since ‘89.

Earlier this month, the Roughriders dealt Joseph and a 2010 third-round draft pick to the Toronto Argonauts for offensive tackle Glenn January, defensive lineman Ronald Flemons, a 2008 first-round pick and 2010 second-round selection.