9:21pm: Jon Heyman of CBSSports.com says (on Twitter) that talks haven't gotten off the ground, and the two sides will revisit an extension during the season. The Yankees are willing to do $20MM over three years, but Martin wants a raise.
3:03pm: The Yankees have suggested the possibility of re-working Russell Martin’s one-year contract into a three-year extension, agent Matt Colleran told Andrew Marchand of ESPNNewYork.com. However, GM Brian Cashman said Martin and Colleran "weren't interested" in the team's initial offer, Jack Curry of the YES Network reports (Twitter links). Martin will earn $7.5MM in 2012 on his current contract before hitting free agency.
The Yankees aim to have a payroll under $189MM by the 2014 season for luxury tax purposes, and Martin is willing to “be flexible in their budget constraints," according to Colleran. GM Brian Cashman and Colleran spoke yesterday and will likely discuss a deal again soon. Though the Yankees' initial offer didn't entice Martin to sign, Cashman said he's open to resuming discussions.
Meanwhile, the Cardinals continue extension talks with Yadier Molina, who is also scheduled to hit free agency after the season. If Martin and Molina sign long-term, Mike Napoli and Miguel Montero would be the top available free agent catchers next winter. Arizona GM Kevin Towers said earlier in the offseason that there are few satisfying comparable catchers to Montero and MLBTR's Extension Tracker supports his assertion. The catchers with five or more years of service time who recently signed extensions wouldn't be relevant to Martin, Molina, Montero and Napoli.