The Yankees are keeping an eye on San Diego's Jake Peavy as they continue to court free agents like CC Sabathia, A.J. Burnett and Derek Lowe.
The Yankees and Padres have had "numerous discussions" about Peavy, according to a Major League source.
The Braves recently pulled out of the race for Peavy, and Padres GM Kevin Towers said Thursday that the Cubs are no longer a player in the trade talks.
"As of right now, there hasn't been a deal that's been presented to us that we could accept," Towers said.
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