Yankees, Reds Working on Arroyo Deal

The Yankees are in serious discussions with the Reds about acquiring Bronson Arroyo, although right now the deal may be hinging on how much of Arroyo's remaining contract the Reds are willing to eat, major league sources told FanHouse on Monday.

Arroyo, 32, is due nearly $4 million for the rest of this season, plus $11 million in 2010 and a $2 million buyout or a $11 million option in 2012. Arroyo is 10-9 with a 5.21 ERA, but he has a 2.08 ERA in his past three starts.

Reds top officials met via conference call this morning, an indication to one big-league source that they were "close to a deal." Arroyo remains the scheduled starter for Tuesday night's game against the Padres, according to Cincinnati's official Twitter account, however the Yankees have two scouts in Cincinnati.

Fletcher: Yanks Scout Lee | Price: Red Sox in on Halladay

The Yankees have been using Sergio Mitre in place of Chien-Ming Wang (shoulder). But if they need one more replacement starter, they are virtually out of options, since Phil Hughes is entrenched in the bullpen. Besides Roy Halladay, they've also been connected to Cliff Lee and Ian Snell.

The Yankees had a scout in Seattle specifically to see Lee pitch on Sunday against the Mariners, a source said.

Lee is the next-best alternative to Halladay, but he'll also come at a steep price. The Indians have him signed for next year, when they have reasonable hope of contending again.