According to Bryan Hoch of MLB.com:
The Yankees have not ruled out a return from Jason Giambi in 2009, and general manager Brian Cashman has already reached out to Giambi to gauge his interest in playing in New York for another season. Giambi said that Cashman told him he would need to figure out his own situation first.
Giambi is finishing up a seven-year, $120MM contract signed in 2001. He has a $22MM option for ’09 with a $5MM buyout. Getting Giambi at one-year, $17MM isn’t that bad, but the Yankees are still expected to take the buyout. They can probably get him back for less, and Giambi would love to stay. However, he has his eye on a multiyear deal and the Yankees probably won’t do that.
Giambi, 38 in January, hit .251/.377/.513 in 551 plate appearances. His defensive numbers at first base grade out poorly, and time will have to be spent at DH. Possible fits: the Angels or Rangers. However, the Rangers may focus on pitching even if Milton Bradley departs. If the Angels lose Mark Teixeira and Garret Anderson, they might have room for Giambi. They reportedly had interest in Giambi in May of last year.