This seems based off the idea that Alex Rodriguez got a 10-year deal that takes him up until he’s 42 as well. It seems far fetched and un-realistic, but Hal Steinbrenner did warn that negotiations with Jeter could get messy. Maybe this is what he meant.
If this is true, I expect the Yankees to counter this with a two or three year offer and things will get messy. It at least sounds like pure speculation though.