Hat tip to 5020 who first saw this story and reported in the 'Starks Dilemna' diary.
Details are very sketchy at this point, as no major media outlet and only one local paper are reporting, but at least one source is reporting that the Steelers have slapped the Transition Tag on OT Max Starks.
I'm still not 100% sure on this story because it's not being reported by NFL.com, Steelers.com, ESPN, or the Post Gazette but the Pittsburgh Tribune-Review is reporting that right now. The transition tag ensures that the Steelers can match any offer made to Starks throughout the free agency period. If no offer is made Starks will earn an average of the top 10 offensive linemen salaries ($6.9 million). The Steelers will not get any compensation if they do not match but at least they have a chance now. The transistion tag is the one that has been defeated with 'poison pill' clauses in the past (see Steve Hutchison).
We will try and keep this story updated as more details/confirmations become available.
[Update]:It looks to be official now as the Post Gazette has picked up the story as well.