Update 1/25 21:41: According to Andrew Marchand of ESPN 1050 in New York, there is “no time-table” for Damon to make a decision on free agency. Damon’s agent, Scott Boras, told Marchand the process is becoming more “defined” right now. Boras declined to say if the Yankees are still involved. The Yankees have indicated that they will not go much beyond the $2 million that they have left in their budget.

Update 15:55: Buster Olney of ESPN Tweets: Brian Cashman on recent conversations with Damon: “We have no deadline to anyone. All agents know what money I am playing with. “We will spend it when ready, if at all.” Damon will have to lower his initial asking price dramatically to return to NYY

1/23 15:18: Jon Heyman of Sports Illustrated says that the New York Yankees have given Johnny Damon the weekend to decide on whether he wants to come back to the Bronx at a reduced salary. The Yankees have previously stated that they have about $2 million to spend on an outfielder, but they may spend a little  more to bring back Damon. Heyman says that Damon’s chances of accepting the low-base contract from the Yankees appear slim.

If New York and Damon cannot agree, then the team will continue to search for an outfielder and hopes to sign one by mid-week. Among those that are free agents include Reed Johnson, Randy Winn, Xavier Nady, Jim Edmonds and Jermaine Dye.

Damon’s agent, Scott Boras, has insisted on a multi-year deal for his client, and his insistence may be backfired on him. Boras had been requesting at least a two-year, $20 million deal.

You can see Damon’s contract history and statistics here.