Tom Verducci has this from Palm Springs:

The New York Yankees declined the 2006 option on first baseman Tino Martinez, opting to pay a $250,000 buyout rather than bring him back at $3 million for 2006.

Yankees GM Brian Cashman denied that the club would use catcher Jorge Posada as their first baseman, with Jason Giambi filling the designated-hitter role full time.

According to baseball executives at the general managers meetings here, the Yankees have floated Posada’s name on the trade market. He does not have a no-trade provision. The Yankees, though, have no real expectations of moving Posada because of his hefty contract.