ESPN.com reports that, according to a source, Andy Pettitte has decided to return for his sixteenth season and, as expected, his preference is the Yankees.

According to Joel Sherman at the Post, the team has already made an offer to him, in the area of $10 million dollars, that was rejected. But, Sherman quotes an NL official who has spoken to a party involved in the negotiation and that official feels it's only a matter of time before the two sides come to terms. Doing so, Sherman suggests, would allow the team to not be a player in the John Lackey sweepstakes. They could, instead, take a one year shot at a health risk, high upside pitcher, like Ben Sheets, Justin Duchscherer or Rich Harden.

Negotiations will pick up at the winter meetings in Indianapolis, which just began, says Sherman. Both he and Jon Heyman suggest the Yankees will kick them off by offering him a little more than $10 million.

Via Chad Jennings and Steve Adams.