CC Sabathia is staying with the Yankees. Sabathia had until midnight on Monday to opt-out of his contract, which had four years and $92 million remaining on it. He did so, but immediately agreed to a new contract with New York. "Yankee fans, I'll be here fighting for number 28 next year," he wrote on his Twitter account. Jon Heyman of Sports Illustrated is reporting that the new deal is worth $122 million over five years with a vesting option for a sixth season worth another $25 million.

CC Sabathia has agreed to a $122 million extension with the Yankees. The new deal will add $30 million to his contract. The extension adds a $25 million salary for 2016 and the Yankees now have a $25 million option for 2017 with a $5 million buyout. Sabathia agreed to a $161 million contract with the Yankees in December of 2008 and helped the team win a World Series in his first season.

The Yankees considered courting Carlos Beltran as a free agent until they learned that his agent Scott Boras was looking for a three-year deal, according to a source. The development led New York to pick up the 2012 option on the contract of Nick Swisher. The option is worth $10.25 million.

The Marlins could be a factor in the free agent market this winter. Florida has money to spend and Buster Olney of ESPN.com wonders whether or not they'll court top free agents like C.J. Wilson or Jose Reyes.

Rangers general manager Jon Daniels says the team will make a decision on whether Neftali Feliz will start or close next season before spring training. "I hate spring training decisions," Daniels said. "I do. I'd have to go back and study it, but you make as many bad ones as good ones. Sometimes you get bailed out and Nelson Cruz clears waivers. Everyone is in the fish bowl. I don't think it's the best way to make decisions." Last year, one of the big questions was whether Feliz would move from closer, where he was the American League Rookie of the Year in 2010, to the rotation.

Jason Giambi and the Rockies have exercised their mutual option on his $1 million contract for 2012. Giambi had a .958 OPS with 13 homers and 32 RBIs in 131 at-bats as Todd Helton's backup last season. He hit a home run once every 10 at-bats against right-handers.

The Rangers have exercised the 2012 option on the contract of right-hander Colby Lewis. Lewis, 32, has become a reliable rotation member for Texas the past two seasons, pitching at least 200 innings in each. He will make $3.25 million in 2012.

John Lackey is scheduled to undergo Tommy John reconstructive elbow surgery on Tuesday. The surgery, which will be performed by orthopedist Lewis Yocum in Southern California, will result in Lackey missing the 2012 season. Red Sox general manager Ben Cherington announced at his introductory press conference that Lackey would need surgery. "John Lackey pitched through circumstances this year that I don't think any of us can fully understand, and he got beat up for it a little bit," Cherington said. "This guy was dealing with stuff both on the field and off the field that were very difficult, and he showed tremendous toughness pitching through that." Lackey, who is two years into a five-year, $82.5 million contract, finished the season 12-12 with an ERA of 6.41.

The Indians have their option $9 million contract option for 2012 on Grady Sizemore, making him eligible for free agency. Injuries have sabotaged Sizemore's career, limiting him to just 210 games the past three seasons. He has undergone five surgeries, two on his knees, in three years. It's possible the Indians may try to re-sign Sizemore, who hit 33 homers and stole 38 bases in 2008, as a free agent. "This was an exceptionally difficult decision," general manager Chris Antonetti said. "We have a profound respect for Grady, his work ethic, his intensity and all the attributes he brings to the game. Baseball is a better game when Grady Sizemore is on the field playing."

Theo Epstein met with manager Mike Quade in a seven-hour meeting on Thursday to discuss his status with the team, according to a source. Quade met with Epstein and general manager Jed Hoyer in Chicago. It was reported initially that the trio met with Florida. The manager has one year and $1 million remaining on the two-year deal that he signed in November 2010.