General Manager Brian Cashman declined to comment on the forthcoming negotiations, which was first reported on SI.com this afternoon. Rodriguez has not addressed the possibility of opting out of his contract with reporters. He has consistently stated this season that he loves playing in New York and for the Yankees but has avoided responding to questions about his contract.

Yankees Owner George Steinbrenner's spokesperson, Howard Rubenstein, said today: "George Steinbrenner certainly thinks that Alex is a spectacular athlete, and he wants to keep him."

Rubenstein did not comment on whether Steinbrenner's desire to keep A-Rod in pinstripes extends to a renegotiation of his contract.

Rodriguez has approximately three years and $81 million remaining on the 10-year, $252-million contract he signed with the Texas Rangers before the 2001 season. The Rangers must pay about $29 million of that.

"He's got a significant contract," Cashman said during spring training. "He negotiated an opt-out in that contract, and he has the right to do that if he chooses. We hope he doesn't. We hope he stays. He has a decision at the end of the year, not the Yankees."

Since then, Rodriguez has put up remarkable numbers. He batted .317 with 30 home runs and 86 RBIs before the All-Star break — the best first-half numbers of his career. While the Yankees offense has often floundered this season, Rodriguez has not. If Rodriguez does opt out, the 31-year-old could command a contract of eight years and $200 million or more. While the average annual value might not be an increase over his current contract, the total dollars committed surely would.

"I've said, `No comment,' since spring training," Cashman said. "I'm not going to comment on contracts."

Although the source confirmed that the Yankees plan to talk to Rodriguez about a contract extension, they will only do that before he opts out of the contract. Should the Yankees negotiate with him after that point, they would forfeit the benefit of having the Rangers pick up a portion of the dollars. That's a big dissuader at nearly $10 million. The Yankees have traditionally not negotiated with players during the season.

If Rodriguez does hit the free-agent market, there could be a handful of big-market teams that seek to add him to their lineup. He's still young (he turns 32 on July 27), is a future Hall of Famer who may someday challenge for the all-time home run record, and he could play either third base or his former position of shortstop.

The Los Angeles Angels of Anaheim are considered likely to pursue Rodriguez. Angels Owner Arte Moreno has increased payroll since buying the team, although no individual player is making $20 million or more; Moreno has said he is a fan of Rodriguez, and Rodriguez is a fan of Angels owner Mike Scioscia.

Other teams that may pursue Rodriguez include the Cubs (Rodriguez loves his former Mariners manager Lou Piniella), the Red Sox (they went after him once before), the Dodgers (another big-market team that is a contender) and the Giants (they will have money to spend and a hole in their lineup if Barry Bonds leaves).