Cottbus told all relevant players that they want to extend their contracts. This includes Berhalter, who is one of two who already told the club concrete numbers they want to earn. For Cottbus this is too much, they want to negotiate with him. I got no clue though if the new contract is expected to be also valid for 2.Bundesliga (I assume that).
They changed tactics over the winter break, and have won 2 straight. So hell yeah, they have a chance.
The movie "The Negotiator" should have been about Berhalter and his agent. He has been involved in more contract discussions than any single player I know.
I don't think this is the time for Gregg to play hardball. I think Cottbus is the best he's going to do. As for relegation, Cottbus plays @Hansa Rostock, @Werder Bremen, and Bayern Muenchen. If they can get 3 points or more out of those matches, then they may stay off the bottom of the table. It's going to be tough, but they still have a chance at avoiding relegation. Still 3 months to go. I can't remember if it's bottom 2 or bottom 3 teams go down for relegation.
Bottom 3 go down (#s 16-18). Keep in mind that Kaiserslautern (presently last, but probably better than that) has significant financial difficulties. It is very possible that Cottbus, if they finish 16th, but behind Kaiserslautern, could stay up if Kaiserslautern loses its license and is relegated on those grounds. Cottbus has a realistic chance of staying up, but if I had to bet the farm, I'd say they are going down.