Here's the story from ESPN:

According to the New York Daily News, however, the popular Yankees manager will be fired unless he decides to resign first to save face. Sources told the newspaper that former Yankees player and manager Lou Piniella will be owner George Steinbrenner's choice to replace Torre.

I have to head to church but chew on that for a while. What do you think? At this point, I have a few conflicting emotions - I'll try to get them up here later. Remember that at this point, this is just rumor and speculation. Take it with a grain of salt.

Update: Here are Pete A.'s thoughts on the situation.