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The Yankees are in serious talks with Andy Pettitte, and there is a lot of optimism a deal will get done today, SI.com has learned.

Indications are that Pettitte's one-year contract will include $6 million guaranteed, along with an additional $6 million in incentive bonuses based on innings pitched and time on the roster. The 36-year-old lefty battled shoulder discomfort in the second half of last year.

Pettitte went 14-14 with a 4.54 ERA for New York last season, earning $16 million in the process.

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