The Reds exercised the 2012 option on the contract of second baseman Brandon Phillips on Monday, but declined a $12 million option to keep closer Francisco Cordero for another season. Phillips batted .300 with 18 homers, 82 RBIs and six errors last season, when he was named an All-Star for the second time. Cincinnati picked up his $12 million option and is trying to negotiate a multiyear deal. "We're going to continue to talk about extending him long-term if possible," general manager Walt Jocketty said. Jocketty said the Reds basically had to decide between keeping Phillips or Cordero, given their payroll constraints. The Reds decided to pay a $1 million buyout to Cordero, who becomes a free agent but could stay with Cincinnati if he's willing to take a reduced contract. "We have a lot of tough decisions we've had to make this offseason going forward," Jocketty said. "We'll continue to talk with (Cordero). This also gives him an opportunity to see what the market is like."