It looks like Dotel has found a home in Kansas City. From the Boston Herald:

According to sources, right-handed reliever Octavio Dotel turned down an offer from the Sox to accept a one-year deal worth an estimated $5 million in guaranteed money from the Kansas City Royals. The deal also is believed to include up to $2 million incentives, which could make the deal worth as much as $7 million.

Villone turned down our offer of arbitration:

"To decline it was the best option I had," Villone said in a telephone interview. "Closing my doors too quickly on a possible multi-year deal didn't make sense." ...

"If you're asking me today, New York is the only place I'd consider a one-year deal," Villone said. "But a two-year deal is still my preference."

Finally, the New York Post mentions that we've been talking with Pittsburgh about reliever Damaso Marte.

The Pirates and Yankees have talked about a trade that would bring lefty reliever Damaso Marte to the Yankees for outfielder Kevin Thompson. If Thompson is dealt, Bernie Williams could return as the fifth outfielder. Marte, 32 in February, is owed $4.7 million for 2007 and 2008. He could be protection against the Yankees losing Ron Villone and not signing Scott Schoeneweis.

Marte would be a nice addition, I think. 7 years into his career, he's performed well, and he is the holder of a 3.28 ERA in 362.1 IP. He pitched 1 and 2/3 innings for the White Sox in the postseason in 2005, failing to allow a run.

Via Pro Sports Daily.