The Mets have exercised Terry Collins' contract option for 2013, according to Adam Rubin of ESPNNewYork.com (on Twitter). The manager signed a two-year deal for 2011 and 2012 last November, but GM Sandy Alderson has been pleased enough with Collins' work that he will bring him back for a third year.
Collins has led the Mets to a 76-84 mark in his first season as an MLB manager since 1999. The Mets suffered injuries to key players this season and received little to no contribution from Johan Santana, Jenrry Mejia and Ike Davis, so it's not fair to judge Collins on his team's unimpressive record.
The Mets will cut payroll next year, but they have many contracts coming off of the books, so they should have some cash to spend this offseason. MLBTR's Tim Dierkes explained yesterday that the Mets would have enough money for Jose Reyes and a few others if they tender contracts to most of their arbitration eligible players and remain quiet on the trade front, even if their payroll drops to the $100-110MM range.