The Twins and Carl Pavano are "making steady progress" on a deal, according to a source.
Pavano has expressed interest in re-signing with Minnesota and the contract being discussed is believed to be for two years.
The right-hander, who turns 35 on Saturday, is considered to be the top remaining starter on the free-agent market.
He went 17-11 with a 3.75 ERA for the Twins in 2010.
Pavano, Twins 'Making Steady Progress'