The Yankees will decline Mike Mussina's $17 million option by Wednesday's deadline, which will entitle the pitcher to an additional $1.5 million buyout from the original six-year deal he signed after leaving Baltimore following the 2000 season. But a representative for Mussina's agent, Arn Tellem, said last night that "Arn has had very productive talks with Brian Cashman, and they are making very good progress." The new deal is expected to be worth between $22 million and $23 million through 2008.