NEW YORK -- The Yankees have spent most of their offseason batting around a deal for Johan Santana, internally debating the merits of swapping young talent for the established Twins ace.

After two months, those arguments may finally be running out of steam.

Yankees senior vice president Hank Steinbrenner told the New York Daily News in Thursday's editions that while there is "nothing new" to report on the trade front for Santana, he is beginning to lean away from the idea, citing the intrinsic cost in terms of both player talent and dollar figures.

"What it comes down to right now is giving up a lot [in a trade] and then having to do the big contract, as well," Steinbrenner said. "If [Santana] was just a free agent, we could just go ahead and do it. There's a big difference this way. We have to sign him as if he's a free agent, plus you have to give up major talent. That's a tall order."

While Steinbrenner has openly stumped for a Santana trade, several organizational voices seem less than elated with the potential package that New York would have to surrender.

The Yankees and Twins had discussed a deal that would have swapped right-hander Phil Hughes, outfielder Melky Cabrera and two mid-level prospects for Santana, a two-time American League Cy Young Award winner who will be 29 by Opening Day and would require a lucrative contract extension in order to waive his no-trade clause.

Reports have indicated that Santana could be in the market for an extension for as much as seven years and $140 million. Steinbrenner has insisted that he would not go beyond five years in a potential contract offer to Santana, and he has not spoken to the left-hander or his agent, Peter Greenberg, regarding that topic.

The Yankees' retreat could prove to be a measure of good news across town.

The Minneapolis Star-Tribune reported on Thursday that the Mets may be moving forward in pursuit of Santana, wielding a package of outfielder Carlos Gomez and pitchers Deolis Guerra, Kevin Mulvey and Phil Humber. If the Mets add outfielder Fernando Martinez, the report said, a deal could be struck.

The Red Sox have also been linked in discussions with the Twins through the course of the lengthy discussions. Despite Steinbrenner's self-imposed deadline to reach a deal during the Winter Meetings, a long-rumored Red Sox package, which would potentially include outfielder Coco Crisp and left-hander Jon Lester, has similarly not been enough to entice Twins general manager Bill Smith to pull the trigger.

Steinbrenner said that GM Brian Cashman has weighed the idea of parting with young talent for Santana, saying that "one day he's leaning to do it and the next day he's not sure." General partner Hal Steinbrenner, who controls the club's financial aspects, is also believed to be undecided.

The Yankees currently project to report to Spring Training with a starting rotation comprised of Hughes, Joba Chamberlain and Ian Kennedy vying for slots alongside Chien-Ming Wang, Andy Pettitte and Mike Mussina.