HARRISBURG, Pa.—A top budget aide to Gov. Tom Corbett says a British firm has extended its bid to manage the $3.5 billion Pennsylvania Lottery while the administration mulls over how it will respond to the state attorney general rejecting the deal.

Executive Deputy Budget Secretary Peter Tartline said the bid from Camelot Global Services that was scheduled to expire Saturday has been extended through Friday.

Pennsylvania Attorney General Kathleen Kane has said she wouldn't approve the 20- to 30-year contract with Camelot because she says elements of it conflict with the state constitution and state lottery law.

Corbett could challenge Kane's decision in court. The contract's legality is also being challenged in court by Democratic lawmakers and the union that represents lottery employees.