Kevin Millwood recently rejected the Yankees' offer of a minor-league contract, according to a report by The New York Post.
The sides continue to talk, but Yankees officials are adamant they will not give Millwood a major-league deal to compete for a back-of-the-rotation job.
The deal offered to Millwood was similar to the one Freddy Garcia signed with New York earlier this offseason.
Millwood Turned Down Yankees' Offer