According to mlive.com:

Outfielder Gary Sheffield, a nine-time All-Star who won a world championship with Tigers manager Jim Leyland in Florida, has been the subject of serious trade talks this week between the Tigers and the New York Yankees. One baseball official suggested Thursday that a deal could happen soon, but other officials said the Yankees were talking to several teams and would prefer to send Sheffield to the National League.

It's not clear what the Tigers would need to give up to acquire Sheffield, but the Yankees' needs include a utility infielder (the Tigers could offer Omar Infante or Ramon Santiago) and starting pitching (the Tigers could offer Humberto Sanchez or Jordan Tata).

Via Pro Sports Daily.