Bayley has been engaged in a feud with Lyra Valkyria, and was speculated to have been "written off" WWE TV.
Nobody in WWE could confirm that Bayley is off WWE TV for the time being, but her contract situation has been a point of discussion and speculation in both WWE and AEW for quite some time. The expectation is that Bayley's deal is up by the end of the year unless injury time is added. A specific date isn't confirmed, but WWE sources claimed that as of now, Bayley has not signed a new WWE contract. It is expected that the company will want to retain her. While that seems like a forgone conclusion, she will be in demand while the company has been cutting salary costs.
Bayley's contract and potential free agency have been a topic of conversation backstage in AEW for quite some time as well. The nature of her deal has been speculated for quite some time, with the obvious conclusion being that AEW is going to be heavily interested and make a play for her if she becomes available. Bayley has been at a number of AEW shows, but we're told that Tony Khan avoids conversations with contracted WWE talent that are at the shows. A number of sources have been discussing the possibility of Bayley joining AEW for almost a year.
An agent that Fightful spoke with says that they believe Bayley should at least hit the negotiation period, and thinks that the demand she will potentially have from AEW and WWE could tip the change in contract terms for many in WWE. As of this point, most WWE contracts do not have guaranteed years or no-cut deals in them, and the agent we spoke to believe that she could be a person who could possibly set that standard after many deals were cut midway through with millions of dollars left on the table.
The points of what WWE and AEW could offer are what has garnered the interest of a lot on the industry as well.
WWE and AEW are both likely to offer multi-year, multi million dollar contracts. AEW has more of a habit of seeing the deals through, and also pays travel costs, and allows talent to take outside bookings and signings.
When speaking to a source in the convention world, they believe Bayley would be one of the more in-demand as far as signings and meet and greets go in the last couple of decades.