9:14pm: Jon Heyman of SI.com tweets that the Yankees said a deal was "not realistic at this point," implying that Arroyo was making too much money for their liking.
6:17pm: Peter Abraham of The Journal News tweets the Yankees have shot the rumor down.
5:51pm: MLB.com's Mark Sheldon says that Arroyo is indeed scheduled to start for the Reds tomorrow. Tuesday's starter had been listed as TBA in error.
5:00pm: The Yankees and Reds are seriously discussing a Bronson Arroyo trade, according to Jeff Fletcher of AOL FanHouse. One of Fletcher's sources says the possible deal "will get done," though the two clubs haven't determined how much of the $4MM remaining on Arroyo's contract the Reds will pay. Arroyo will make $11MM next season and the same amount in 2011 if his team doesn't buy him out for $2MM.
Earlier this afternoon Fletcher reported that the Reds could be on the brink of making a move.