From ESPN:

Unless there is a 24th hour reversal in the talks between the New York Yankees and the San Diego Padres, the Yankees intend to withdraw Kei Igawa from trade waivers by Tuesday's 2 p.m. trade deadline, ending conversations between the teams about a deal involving the left-handed pitcher.

We've got 25 minutes until the deadline. Looks like he's going to remain a Yankee.

Via Tony Gicas.