NEW YORK — The New York Yankees reeled in another prime free agent, reaching a preliminary agreement today with first baseman Mark Teixeira for $180 million over eight years.

A person familiar with the negotiations disclosed the agreement, which is subject to a physical. The person spoke on condition of anonymity because the deal was not yet final.

Teixeira's deal raises the Yankees' offseason spending spree to $423.5 million. Just last Thursday, the Yankees completed agreements with two pitchers, giving CC Sabathia a $161 million, seven-year contract and A.J. Burnett an $82.5 million, five-year deal.

The Yankees, preparing to move into their pricey new ballpark, will hold the four largest contracts in the sport. Third baseman Alex Rodriguez has baseball's highest deal at $275 million over 10 years, and shortstop Derek Jeter is second at $189 million over 10 years.

Teixeira's agreement came just one day after the Yankees received a $26.9 million luxury tax bill for 2008, when their streak of 13 consecutive playoff appearances ended.

Boston Red Sox executives met with Teixeira and agent Scott Boras last week and were told they were being outbid. Teixeira, who is from Maryland, also had discussed signing with the Baltimore Orioles and Washington Nationals.

"We would have loved to have had the player, who appealed to us because of the special circumstances of where he's from and where we are. We diverted from our plan to try to get him," said Orioles president of baseball operations Andy MacPhail. "But at the end of the day, it was just too much to pay for one player. It would handicap our ability to go forward."

The Los Angeles Angels, who acquired him from Atlanta last season, made an eight-year offer during the winter meetings but withdrew it last weekend.