LAS VEGAS — Jake Peavy appears to be staying put with the San Diego Padres — for now.

General manager Kevin Towers said Thursday that Cubs GM Jim Hendry told him Chicago was ceasing its pursuit of the 2007 NL Cy Young Award winner. Towers said Monday that the Cubs were the only team in the running at that point.

Padres spokesman Warren Miller confirmed that trade talks with Hendry and the Cubs had halted.

"Now we need to start moving forward," Towers told reporters before leaving the winter meetings. "He said he's got other things going on. I respect his position."

The Padres have been trying to trade Peavy in order to trim payroll following a 99-loss season. The Atlanta Braves pursued Peavy earlier this offseason, but said they were shifting their focus elsewhere after talks fell through.

Towers said he might now decide to build his 2009 roster with Peavy on it. The GM plans to meet again next week with team CEO Sandy Alderson and Peavy's agent, Barry Axelrod.

Peavy has a no-trade clause in his contract with the Padres, and Axelrod has said the right-hander likely would approve moves to the Braves, Houston Astros, Los Angeles Dodgers, Cubs and St. Louis Cardinals.

The 27-year-old Peavy went 10-11 with a 2.85 ERA in 27 starts last season as the Padres finished last in the NL West at 63-99, their worst record in 15 years. He spent May 15 to June 12 on the disabled list with a strained right elbow.

During his Cy Young season in 2007, Peavy was 19-6 with a 2.54 ERA.