6:05pm: Olney says the O's are being told that Guerrero has an $8MM offer in hand, which is about $3.5MM more than they are willing to spend, including incentives (Twitter link). Roch Kubatko of MASNsports.com reported that Baltimore's offer falls in the $3MM to $5MM range.
5:21pm: The Orioles and Vladimir Guerrero are making progress in their talks, reports ESPN's Buster Olney (on Twitter). If a deal does get worked out, Guerrero would assume DH duties and push Luke Scott to left field according to Buster.
Yesterday we heard that the O's offered Vlad a one-year deal worth about $2MM, but the former AL MVP wasn't terribly enthusiastic about it. As Ben Nicholson-Smith explained, Guerrero's market is limited, so it's tough to see him signing for much more than what was offered. He hit .300/.345/.496 with 29 homers for the Rangers last season, earning $6.5MM in the process.