11:37pm: A bit more detail from SI's Jon Heyman, via Twitter:
Hoffman will be returning to the Brewers. Deal for about $8MM expected to be done within a week.
6:53pm: Tom Haudricourt of the Milwaukee Journal-Sentinel reports that Milwaukee and closer Trevor Hoffman have already begun discussing a return in 2010. Hoffman, who is coming off of a one-year deal worth $6MM, said that the two sides were "pretty close" to an accord. MLB.com's Adam McCalvy believes the deal will include some kind of 2011 option.
The likely future-hall-of-famer posted 8.0 K/9 along with an ERA of 1.70 this season - his best ERA since 1998.
Hoffman's deal will likely be a short one as he turns 42 next Tuesday. If he does re-sign with the Brewers, it will certainly weaken the pool of available closers this winter.