DANA POINT, Calif. — A.J. Burnett told the Toronto Blue Jays on Tuesday that he will opt out of the remaining two seasons of his $55 million, five-year contract.

The pitcher will forfeit $24 million and can file for free agency. His contract called for a $6 million signing bonus, a $1 million salary in 2006 and $12 million in the remaining seasons.

Blue Jays general manager J.P. Ricciardi said talks will continue on the possibility of a new deal for the hard-throwing right-hander, who turns 32 in January.

"We have a good dialogue going," Ricciardi said at the general managers' meetings. "They're going to get back to us later in the week."

Burnett went 18-10 with a 4.07 ERA in 34 starts this season and led the American League with 231 strikeouts. He went 10-8 in each of his first two seasons with Toronto, and injuries limited him to 21 starts in 2006 and 25 the following year.

With pitching scarce, Burnett figures to be a target for high-revenue teams such as the New York Yankees and Mets, and the Boston Red Sox. His agent, Darek Braunecker, left open the possibility of re-signing with Toronto.

"Our talks with them have been productive and we will still continue our talks with them," Braunecker told The Canadian Press. "This is something we needed to do just to give us the opportunity to assess the market and who the other interested parties are."

Ricciardi believes Braunecker's assertion that the Blue Jays remain an option.

"If we weren't a possibility, he wouldn't have said it," the GM said.