The New York Yankees and manager Joe Girardi have begun to talk about the parameters of a new three-year contract for between $9 million and $10 million, a source close to the situation said on Wednesday
Talks are going well and could be wrapped up soon, the source said.
Girardi's first contract is up; he earned about $7.5 million for the past three seasons.
On Monday, Yankees general manager Brian Cashman said he thought negotiations should go smoothly because both sides want Girardi to return.
The Yankees have other signings to focus on beyond Girardi's deal. The contracts for captain Derek Jeter and longtime closer Mariano Rivera are up, and while both free agents are assumed to be likely to re-sign with New York, those negotiations would probably involve more time and certainly be for much larger values than a Girardi deal.
Multiple reports have also said that the Yankees will set their sites on the free-agent gem of the offseason, Rangers left-hander Cliff Lee.
SI.com first reported the talks.
ESPNNewYork.com's Andrew Marchand contributed to this report.