Looks like the multi-year contract want thing has been blown out of proportion (surprise!), and from what is being reported after actually speaking to the relevant parties Andy is just waiting to hear back from the team. From Ed Price:

Yankees general manager Brian Cashman told reporters at the GM meetings this week that “Andy is a guy you’d like to have back.” But Pettitte said he hasn’t heard that directly from the team.

“I let them know a few a weeks ago I would like to come back and play,” Pettitte said. “(Agent Randy Hendricks) told me he’d call me if he’s heard anything, and he hasn’t heard anything.”

Pettitte disputed reports that contract length might be an issue, saying, “I don’t want a multi-year deal.”

There are a few things to take out of this:

• Andy has already made up his mind about his desire to pitch next year, which means unlike last year he’ll probably have much better conditioning coming into the season if the Yankees do bring him back.
• Honestly, it just sounds like he wants to give it a go for one year at the new Yankee Stadium after spending ten years or so pitching at the old one.
• The Yankees are clearly waiting to see what Mussina wants to do before moving forward with contracts and all that. Bringing back both of them wouldn’t be bad, honestly, if they sign CC Sabathia. The problem is, if they don’t sign Sabathia it makes more sense to go for two really good guys. Looking at it quickly, there are a lot of “good” pitchers up for grabs, but other than CC there’s nobody who really stands out. AJ Burnett has the stuff, but can’t be counted on to be healthy and Derek Lowe I don’t think would be a good choice. Oliver Perez is a nice back-end guy, but I wouldn’t want him in the #2 spot. Ben Sheets is even less likely to be healthy than Burnett.

We’ll see how it all turns out, but Pettitte not wanting a deal for more than one year is definitely a step in the right direction. It’s very relieving to hear it come from his mouth.