Those talks began before Thanksgiving, as Newsday reported Saturday. Steinbrenner said in a phone interview yesterday that there was "nothing new on Santana" but that general manager Brian Cashman is engaged in discussions with the Twins regarding the lefthander.

That's not the only thing on the Yankees' plate. They have talked internally about trying to trade for the Athletics' Dan Haren and are working to upgrade their bullpen via free agency. "We need to shore up the bullpen, I would say for sure," Steinbrenner said.

Upgrading the starting rotation, Steinbrenner said, is not an absolute must. But Santana, 28, is perhaps the best pitcher in baseball, and in a different class from any other pitcher potentially available. He is 93-44 in his career with a 3.22 ERA and two Cy Young Awards to his name.

Santana, who is represented by agent Peter Greenberg, recently turned down a four-year, $80-million contract extension from the Twins. He is set to become a free agent after the 2008 season, so teams don't want to give up a fortune in prospects/young talent now, then have to pay Santana a fortune to keep him long-term. But the Twins want premium talent in order to forfeit having Santana pitch for them in 2008.

Asked about specific players who might be part of trade talks for Santana, Steinbrenner said, "I don't really want to get into that."

However, a few players believed to interest the Twins are righthanders Joba Chamberlain, Phil Hughes and Ian Kennedy, second baseman Robinson Cano, centerfielder Melky Cabrera and perhaps minor-league outfielders Austin Jackson and Jose Tabata. But the Yankees have worked hard to upgrade their farm system and want to hold on to as much of that young talent as possible.

Santana is a special case, though. One source said yesterday that none of the above players would be off-limits in the right deal for Santana. Another source indicated that the Yankees plan to cling hardest to Chamberlain and Cano but that the others might be negotiable. The Twins need a centerfielder, as Torii Hunter signed with the Angels via free agency last week.

The Red Sox, Dodgers and Mets also are expected to be suitors for Santana. He has a no-trade clause and can veto any trade, but someone close to Santana said he would waive that clause for the Yankees.

Steinbrenner said talks still are in the early stages. He expects them to heat up by next week's winter meetings in Nashville, meetings that Steinbrenner said he might attend.