UPDATE, 12-3-07 at 9:30am: Peter Abraham says Pettitte will pitch for $16MM, which was his original option.
FROM 12-3-07 at 7:26am:
According to the Houston Chronicle, Andy Pettitte has informed friends and teammates that he will pitch for the Yankees in 2008. The Yankees have been informed as well.
This is a great news for the Yankees, who gain some leverage in the Johan Santana negotiations.