This report describes the status of process development for pretreating Hanford neutralized cladding removal waste (NCRW) sludge, of which [approximately] 3.3 [times] 10[sup 6] L is stored in Tanks 103-AW and 105-AW at the Hanford Site. The initial baseline process chosen for pretreating NCRW sludge is to dissolve the sludge in nitric acid and extract the -transuranic (MU) elements from the dissolved sludge solution with octyl(phenyl)-N,N-diisobutylcarbamoyl methyl phosphine oxide (CNWO). This process converts the NCRW sludge into a relatively large volume of low-level waste (LLW) to be disposed of as grout, leaving only a small volume of high-level waste (HLW) requiring vitrification in the Hanford Waste Vitrification Plant (HWVP).