Cesar Tordesillas

The New York Yankees have discussed a contract extension with second baseman Robinson Cano, who will be a free agent after this season.

Sources say that Yankees owner Hal Steinbrenner is negotiating with agent Scott Boras about not having to bid on the free agent market for Cano's services.

As a matter of policy, the Yankees refuse to discuss extending existing contracts with players, managers or general managers. An exception was made when GM Brian Cashman offered to discuss a contract extension with Alex Rodriguez during the 2007 season.

The 29-year-old Cano, who will play in 2013 under a team option that will pay him $15 million, is expected to command a deal that could reach $200 million as a free agent.

Boras is expected to seek a deal in line with that of the Reds' Joey Votto ($225 million over 10 years), Angels' Albert Pujols ($240 million for 10 years), or Mariners' Felix Hernandez for (five years at $135.5 million).

It remains to be seen whether Boras would allow Cano to sign with the Yankees before testing the free agent market.

A four-time All-Star, Cano batted .313 with 33 home runs, 94 RBIs and a team-high .929 OPS in 2012. He is a .308 lifetime hitter who has averaged 28 home runs and 101 RBIs over his past four seasons, and is considered one of the best defensive second basemen in the league.

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Yankees Seek to Avoid Bidding War for Robinson Cano