Hank Steinbrenner, George Steinbrenner's son and the Yankees' senior vice president, confirmed last night that the Yankees recently improved their offer to Rivera to three years and $45 million; their original offer was three years and $39 million. The New York Times first reported today of the new offer.

"It's a very good offer for a 38-year-old pitcher," Steinbrenner told Newsday last night in a telephone interview. "I want him back. That's the offer. Now the ball's in their court, and that's it."

Rivera, who actually turns 38 on Nov. 29, is very likely to return to the Yankees. Nevertheless, a person familiar with negotiations said that Rivera wanted a fourth year, matching the four-year, $52.4-million extension that Jorge Posada agreed to late last night; Posada will undergo a physical examination tomorrow in order to finalize the deal. Rivera's agent Fernando Cuza didn't return calls today.

Asked if Rivera wanted a fourth year, Hank Steinbrenner said, "It doesn't matter. That's the offer."

The current offer's $15 million annual average value blows away the salary structure for closers. The Mets' Billy Wagner currently sets the standard for closers with his $10.75 million AAV. So Rivera will probably accept the offer, eventually.

The Yankees are speaking with free-agent third baseman Mike Lowell, the 2007 World Series Most Valuable Player with the Red Sox, but they are unlikely to bid more than three years for his services, a person familiar with the Yankees' thinking said. Lowell, who turns 34 in February, already has a three-year offer for about $36 million from the Red Sox, who could turn to a pursuit of Alex Rodriguez if Lowell goes elsewhere.