Pettitte Rejects Offer But Will Play in 2010

So I've heard two things this morning on the first day of the Winter Meetings in Indianapolis. That Andy Pettitte will return in 2010 and that he rejected a 1-year $10MM offer from the Yankees. SI's Jon Heyman tweets negotiations have begun between Brian Cashman and Pettitte's agent Randy Hendricks. According to Buster Olney and Joel Sherman's reports, it's just a matter of working a deal out, so perhaps the $10 million deal isn't what Pettitte wants. I don't think the Yankees will go higher than $12MM. I can see maybe a 1-year $10MM deal with incentives. Either way, many expect this deal to be done so it looks like Andy Pettitte will be back in pinstripes next year, making it less stressful to find a pitcher to replace him this offseason.