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I think he's a tight end but just an extremely versatile tight end. Pat Macfee didn't ask for an increase in his *** rate last year because he handled the Colts kickoff duties too. I think that wherever the team lists him on the depth chart is what his position is. There are plenty of other tight ends who line up either in the slot or wide, that's just how the game has evolved. I think it's in the best interest of both party's to just get a deal completed. His too important to they're offense and he obviously wants the security of his contract. If the Saints don't want to give him a long term contract I'm sure Grigs would!!
In the current format, dude's a WR. But given how diverse positions like TE and LB and limited positions like RB are getting they kinda need to revamp the franchise tag system. I don't really know what they could do but it's too open to loopholes right now.