The Yankees are officially out of the Mike Piazza chase, a certain disappointment to the former Mets catcher. But the San Diego Padres, whose locale appeals to the 37-year-old, remain very interested. According to a major-league official, Yankees general manager Brian Cashman notified Piazza's agent Dan Lozano yesterday that the team would pass on the future Hall of Famer. "I've got nothing to report," Cashman said. The Yankees intend to carry 12 pitchers, leaving them with 13 position players. With catcher Kelly Stinnett, infielder Miguel Cairo and outfielder Bubba Crosby already tagged as reserves, the last spot likely will go to Andy Phillips, who can spot Jason Giambi at first base. The Yankees ultimately decided that Phillips' defense would prove more useful than Piazza's offense. Piazza relished the idea of serving as the Yankees' part-time designated hitter. But with the Yankees no longer interested, he could find himself in San Diego, for about $2 million. The Padres began negotiations with Lozano about a week ago, according to Padres GM Kevin Towers. Said Towers: "[Lozano] basically said to DH was Mike's preference, but if that didn't work out, he'd really want to be on the West Coast."