From Fox Sports' Ken Rosenthal:

The M's and Yankees briefly explored a Washburn-for-Hideki Matsui exchange earlier in the offseason, but the discussions never progressed because Matsui at $13 million is even more expensive than Washburn at $10.35 million this season.

Rosenthal also has a note about the Yankees bullpen:

The Yankees are not currently pursuing free-agent reliever Juan Cruz, according to a major-league source. It's conceivable the Yankees' position could change if they trade Nick Swisher or Xavier Nady, but club officials are comfortable with Brian Bruney and Damaso Marte in the eighth inning and Edwar Ramirez, Jose Veras and Co. before that. The team also is deep in major-league-ready relievers — David Robertson, Mark Melancon, Phil Coke, etc.

Via Ben Nicholson-Smith.