The Yankees have added Bartolo Colon and Freddy Garcia in the last week, but the team is still in contact with Kevin Millwood, reports Sports Illustrated's Jon Heyman (Twitter link). It could be that the Yankees just want to give themselves as many veteran starting options as they can, or, as Heyman opines, "they're growing more worried" that Andy Pettitte will retire. Pettitte's retirement would leave the Bombers with two open rotation spots that would be contested between Colon, Garcia, Sergio Mitre, Andrew Brackman, Ivan Nova and potentially Millwood.
Besides the Yankees, the Orioles, Royals and Indians have also been recently connected to Millwood. Like Baltimore, New York wouldn't be able to guarantee Millwood a rotation spot, but it's possible Millwood would take the risk for a chance to pitch for a contending team.