Andy Pettitte is extremely unhappy with how his negotiations have gone with the New York Yankees, and the lefthander might be softening on his opposition to rejoining the Houston Astros.

What once seemed a fait accompli — Pettitte returning to the Yankees for a 12th season in pinstripes — now appears increasingly in jeopardy, although the two sides continue to communicate and they ultimately rank as each other's first choice.

Pettitte recently rejected the Yankees' offer of a $10 million salary for 2009, and a team source confirmed a New York Post report that the Yankees, with Mark Teixeira's deal completed, are inclined to offer Pettitte even less money now. Pettitte made $16 million with the Yankees each of the previous two years and hoped to match that salary this year.

The 36-year-old's grievances with the Yankees feature, most prominently, these three sentiments, according to people familiar with his thinking:

1. Pettitte believes that the Yankees should display more appreciation for all that he has done for them.

2. While the Yankees are asking that Pettitte take a pay cut, the team clearly is not hurting financially, given its large investments in Teixeira, CC Sabathia and A.J. Burnett.

3. Pettitte thinks that his 2008 season wasn't as bad as the Yankees are making it out to be.

Though Pettitte is popular among teammates, fans and media, emotional breakups play a significant role in his biography. He left the Yankees for Houston after the 2003 season, feeling jilted by the team that drafted him. And he returned to the Yankees after the 2006 campaign, feeling that the Astros didn't display much interest in bringing him back.

In fact, Pettitte still harbored bad feelings against the Astros heading into this offseason, and he very much wanted to be part of the Yankees as they opened their new stadium.

Now, however, the Yankees seem to head Pettitte's enemies list. The Astros have done very little this offseason, vowing financial restraint in light of the national economy. Yet Pettitte has a strong relationship with Houston ace Roy Oswalt, who in turn has a good relationship with Astros owner Drayton McLane. The Astros could stretch their payroll to make room for the Houston resident Pettitte.

When they contemplated signing Teixeira, the Yankees discussed the corresponding moves they would have to make to ensure that their 2009 payroll was lower than 2008. One was saying goodbye to Pettitte. Another was trading Xavier Nady.

Nady figures to be dealt now, although the Yankees also have received calls about newly acquired Nick Swisher. Because Nady has only one year left before free agency, and because Swisher is coming off a terrible 2008 and is owed $21 million over the next three years, teams likely will be more interested in Nady.

Trading one of the two would modestly cut the Yankees' payroll and clear up a roster logjam among the outfielders and designated hitters.