Jimmy Kimmel is in talks with Disney to renew his contract on ABC for another year, according to Deadline, contradicting earlier tabloid reports that suggested he was preparing to leave late-night television when his current deal expires in May. The negotiations come as ABC reportedly seeks to trim the budget of Jimmy Kimmel Live!, mirroring cost-cutting trends seen across late-night US television, including reductions at Late Night with Seth Meyers and the eventual cancellation of The Late Show with Stephen Colbert on CBS.

The talks form part of wider cost-cutting at Disney, which has offered early retirement to longtime executives, cut around 1,000 jobs since April with further reductions at Pixar and National Geographic in July, and is reportedly planning a restructure of its television division under Debra O'Connell. Kimmel and his wife, executive producer Molly McNearney, recently discussed retirement on the Armchair Expert podcast, with Kimmel reflecting on the risk of regretting an early exit. Puck first reported news of the renewal talks.