The deal, sources told Olney, could be done as soon as Monday afternoon. It would pay Pettitte nearly $6 million, with incentives that could make it worth as much as $12 million.
Pettitte was 14-14 for the Yankees last season with a 4.54 ERA. He started 33 games. Pitching with a sore shoulder, he was 2-7 with a 6.23 ERA in his final 11 starts and missed his last turn of the season.
It was his second season back in New York after three seasons with the Houston Astros.
Pettitte began his career with the Yankees, pitching his first nine big league seasons in pinstripes. After last season, indications were that Pettitte and the Yankees wanted to make a deal, but were unable to come to terms on a dollar figure -- until talks heated up this weekend.
Pettitte earned $16 million last season.
If he signs, Pettitte would join a projected starting rotation featuring CC Sabathia, A.J. Burnett, Chien-Ming Wang and Joba Chamberlain.
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