Actually, Abreu won't require us to pick up his option:

Phillies GM Pat Gillick, according to a source, had been given the go-ahead from Abreu's agent yesterday afternoon to work out a deal with the Yanks, Mets or Red Sox. Since Abreu has a full no-trade clause, he is able to dictate which teams he'd be willing to play for; the final trio comprised the ones that he was willing to waive the no-trade clause for without requiring that the $16 million club option on his contract for 2008 be picked up. ...

... Gillick and Yanks GM Brian Cashman began engaging in more serious talks as the afternoon went on, according to a source. It was believed that the Yankees might be sending reliever Scott Proctor to the Phillies in exchange for Abreu and, possibly, former Yankee pitcher Jon Lieber. Prospects could also be involved in the deal. Instead of picking up Abreu's option, the Bombers were expected to pay a lump sum of somewhere near $1 million to Abreu in exchange for him waiving the no-trade clause.

Another SP possibility: Kip Wells:

The two New York teams could be at the forefront of those interested in starter Kip Wells. A deal with the Yankees seems more likely, given that team's additional interest in outfielder Craig Wilson and reliever Roberto Hernandez.

Via Pro Sports Daily.