Updated: Did Pettitte reject Yanks’ first offer?

Update (11:54 a.m.): Despite earlier reports to the contrary, Mark Feinsand says that the Yankees have not yet made an offer to Andy Pettitte. Indications are that the team will make him a one-year offer some time today in excess of the $10.5 million he earned in 2009. “They don’t intend to low-ball him,” Feinsand’s industry source said.

Update (7:22am): Buster Olney says that Pettitte has decided to pitch in 2010, and of course his preference is the boys in the Bronx.

7:12am: Via Joel Sherman, Andy Pettitte has rejected the Yanks’ first offer, a one year deal believed to be worth about $10M. He’s the only player the Yanks have made an offer to since the end of the World Series. Sherman basically says the deal will get done at some point, and the Yankees believe Pettitte wants to return next year. After incentives, Pettitte pulled in about $10.5M in 2009, though it’s not clear if this new proposal contained any such escalators. He’s certainly earned a raise over his $5.5M base salary. Sherman also mentions that the Yanks have told the Blue Jays to stay in touch about Roy Halladay, though no proposals have been made.