Andy Pettitte to stay with Yanks; Hideki Matsui may go

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The Yankees are reportedly close to announcing a one-year deal -- said to be worth $12 million -- with free-agent left-hander Andy Pettitte, who won two games in this year’s World Series, including the clinching sixth game that gave New York it’s 27th championship.

The White Sox, meanwhile, have begun showing an interest in another Yankee, Hideki Matsui. The World Series MVP has also drawn the attention of the Angels, who would probably grow more interested if they fail to land the biggest bat on the free-agent market, that of former Boston slugger Jason Bay. However, Bay may not be changing teams after all. The Red Sox, who originally blanched at Bay’s request for a four-year, $60-million contract, have continued talking to his agent, Joe Urbon, and may be willing to sweeten their offer now that the Yankees have traded for Detroit’s Curtis Granderson. If they fail to land Bay, the Red Sox could turn their attention to slugger Matt Holliday. The team has reportedly already talked with Holliday’s agent, Scott Boras.

And free-agent pitcher Kelvim Escobar, who has pitched just once since 2007, has a line of teams interested in him. Angels General Manager Tony Reagins said Escobar, who has struggled to come back from shoulder surgery, is expected to pitch in the Venezuelan Winter League later this month. It’s an important start for the 33-year-old right-hander because if it goes well, his agent, Peter Greenberg, can expect to hear from more than half a dozen teams including the Yankees, Mets and Red Sox.

-- Kevin Baxter in Indianapolis