A source tells People that Heigl has dropped out of contract talks with the producers of Grey's Anatomy over salary.
Heigl plays Dr. Isobel "Izzie" Stevens on the ABC hit medical drama.
A rep for ABC Touchstone TV declined comment. We will have more information on this situation as it develops. Presumably, Katherine has merely postponed contract negotiations until a later date, and is not necessarily planning to leave Grey's Anatomy. Hopefully, the sides will come together and this member of the terrific ensemble cast will be retained.