From Lisa Kennelly:

On the first day of baseball's free-agency period, the Yankees have opened serious discussions with the agent for third baseman Mike Lowell, said a person close to the negotiations who spoke on condition of anonymity because of the sensitive nature of the discussions.

Cliff Corcoran has a nice analysis of the third base prospects, deciding that he'd take Lowell at a contract of 4 years, $40 million dollars.

Via Dave and Aziz.