Hank Steinbrenner, the Yankees' senior vice president, confirmed to the Associated Press on Monday that his team and the Twins have begun discussions involving Santana and that Minnesota is definitely willing to trade the two-time Cy Young Award winner.

Steinbrenner stressed that the talks are still in the early stages.

"I don't want to get into that at this point, as far as what they want, what we're willing to give and all that," Steinbrenner told the AP. "It's preliminary right now."

Santana, who turns 29 in March, is entering the final year of his contract, and the Twins made it clear earlier this offseason that their goal was to sign him to an extension. But last week the club began listening to offers for the pitcher after sources close to the negotiations revealed that the two sides were in upwards of $40 million apart in their discussions.

The Yankees are the first to officially confirm talks with the Twins regarding Santana, but the Mets, Red Sox, Dodgers and Angels are all reported to have interest in the ace as well.

Twins general manager Bill Smith has repeatedly refused to address any contract negotiations or trade rumors this winter. Santana's agent, Peter Greenberg, also has not spoken publicly regarding any talks with the Twins.

The price of obtaining Santana would be steep, and it could include a package of three or four significant prospects. The Yankees certainly have talent in their system, including three top young pitchers -- Joba Chamberlain, Phil Hughes and Ian Kennedy. Steinbrenner said earlier this fall, when the team was flirting with the idea of pursuing Marlins third baseman Miguel Cabrera, that those pitchers weren't available in a trade for a position player, but he didn't rule out a deal involving a pitcher.

There also have been rumors that the Twins could be asking for second baseman Robinson Cano or outfielder Melky Cabrera. The Twins have been seeking to upgrade offensively this offseason, and they could use a center fielder after losing free-agent Torii Hunter this past week after he signed a five-year deal with the Angels.

A trade involving Santana is not without complications. The left-hander has a full no-trade clause in his contract and would have to approve any deal. It's also expected that he would want an extension completed before the trade is finalized, so there would likely be a 72-hour window in which to discuss that. Santana reportedly is looking for a six-year extension and could command as much as $25 million per year, which would make him the highest-paid pitcher in baseball.