The Oakland A's decided to offer free agent Barry Zito arbitration on Friday, according to a team source. The team, however, did not offer it to free agent Jay Payton. A's general manager Billy Beane has said all year that Zito likely will be out of Oakland's price range, and the ace recently received interest from the Rangers. Payton led Oakland in batting average in 2006, but he has been seen as expendable because young slugger Nick Swisher could replace the 34-year-old Payton in the outfield. If Swisher moves to left field, where he started the 2006 season, Dan Johnson or prospect Daric Barton likely would move to first base. Zito is a Type A free agent, and if he declines the offer, the A's would receive a first-round pick in the 2007 First-Year Player Draft from the team that eventually signs the southpaw. If Zito surprises many and accepts arbitration, the A's most likely would have to pay much more than $8 million -- his salary in 2006 -- for next season.