MLB

Yankees on brink of trading top prospect for Cliff Lee

The Knicks didn’t get LeBron James, but the Yankees were on the brink of obtaining Cliff Lee late last night for a package that would include top prospect Jesus Montero, the Post has learned.

Yankees GM Brian Cashman and Seattle GM Jack Zduriencik have been in constant contact over the past week, but it was only last night that the Seattle GM told Yankees officials he wanted to move quickly, possibly before the All-Star break, which begins Monday.

HARDBALL: CLIFF LEE UPDATES

The Yankees were not assured of obtaining Lee because other clubs, including the Mets, Twins and Rangers, were in talks.

But the Yankees were definitely making the strongest move last night, from seeming disinterest into the clear front-runner — and last night it seemed they were all but certain to obtain the 31-year-old lefty.

In an odd twist, Lee is scheduled to pitch against the Yankees tonight in Seattle.

Lee is 8-3 with a 2.34 ERA and an amazing 89 strikeouts to six walks. With the Phillies, he beat the Yankees twice in the World Series last year, the only two games the Bombers lost in the Fall Classic.

In the offseason, the Yankees tried to make a deal with Philadelphia and offered Montero as the key piece. But the Phillies decided to take the Mariners’ offer instead.

However, Seattle’s plan to contend in the AL West fizzled and Lee was put up for auction. The Mets were perceived to be more interested in the ace than the Yankees. But the Yankees adore Lee as a pitcher and had been planning to make a big push for him as a free agent after this season, anyway.

So they decided to stay engaged on this matter even as the perception in the sport grew that the Twins were the frontrunners with perhaps the Rangers close behind.

Yankees management looked at its rotation and had some pause. CC Sabathia again was an ace and Andy Pettitte is pitching as well now as ever. But A.J. Burnett and Javier Vazquez are not fully trustworthy, especially for the playoffs, and Phil Hughes has an innings limit of about 175, and might not be available to start late in the season.

Cashman might now be in position to either put Hughes in the bullpen to bolster that shaky area or trade a starter, possibly Vazquez, for prospects. Double-A second baseman David Adams would be part of the deal to Seattle; he is a player the Mariners like a great deal.

The Yankees also were obviously worried about being in a highly competitive division with the Red Sox and Rays, and Lee is the kind of player who can separate them. Having Sabathia and Lee – one-time Indians teammates – as a 1-2 punch atop the rotation turns the Yankees into even stronger favorites to repeat as champions.

The Yankees like Montero a great deal, but they were willing to use him as bait for both Lee and Roy Halladay in the offseason. They are deep in catching prospects and could never be sure that Montero could actually make it as a catcher in the majors because defense is the suspect area of his game. He is considered one of the elite hitting prospects in the minors, though he was batting .253 with six homers and 34 RBIs this season at Triple-A.

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HARDBALL UPDATE NO. 1

1. The Yankees have not asked for a window to negotiate an extension. They believe they can outbid anyone in the offseason for Lee anyway, so why not see if he likes New York and the Yankees like him before investing the money.

2. The Yankees will send at least two, possibly three prospects to the Mariners in this deal. Jesus Montero and Double-A second baseman David Adams are the sure things.

3. The Yankees offered Montero to the Mariners early in the process, but Seattle officials played coy initially that it would take a lot more. But at some point yesterday, Mariners GM Jack Zduriencik called Yankees GM Brian Cashman and said he liked the Yankees’ offer best and wanted to work exclusively on that.

The Mariners were valuing a high-end bat they could have in their lineup no later than Opening Day 2011 and/or a catcher. Despite Montero’s problems offensively in Triple-A this year, Seattle still recognized that he was 20 years old and think he has a special offensive ability. The Mariners also believe Montero’s defensive abilities have improved and he might not have to move off the position to first base or DH.

In the end, Seattle could not find another bat nearly as good in an offer from any other team. And unless that changed at the last second, the Mariners were going with the Yankees to trade Lee.

4. Don’t ignore the importance of Adams in this package of at least three players (it could be four from what I hear). The second baseman is currently out at Double-A with an ankle injury. But the Mariners really like him and also imagine he can be part of their lineup as early as the beginning of the 2011 season. They think he is a very good offensive player with good – but not elite – defensive skills.

5. The Yankees felt that they could deal from an area of strength. The Yankees have Jorge Posada signed for one more year and have learned that Francisco Cervelli is at least a capable backup catcher. Austin Romine, at Double-A, is not the offensive prospect Montero is, but he is a very good hitting catcher with much, much better defensive skills than Montero.

In addition, the Yankees love two catching prospects they have further down in the system: Gary Sanchez and J.R. Murphy. Sanchez, in particular, they view as potentially their best all-around catching prospect, but he is 17 years old and in the Gulf Coast League, right now.

And in Robinson Cano, they have a 27-year-old second baseman who might win the MVP this year, so Adams became expendable. In other words, the Yankees would be trading for depth and strength. The Yankees also like a second baseman lower down in the system named Corban Joseph, though not as much as they like Adams.

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HARDBALL UPDATE NO. 2

1. The Mets and Mariners talked a lot, but never got real serious. Seattle GM Jack Zduriencik asked about Ike Davis and the Mets said no way. Since Seattle was looking for an impact bat that would join the lineup no later than Opening Day 2011, the absence of Davis from an offer pushed the Mariners more strongly in other directions.

Mets GM Omar Minaya tried to push Fernando Martinez as the linchpin to a trade along with Josh Thole and another piece. But the Mariners saw neither as a premium offensive player. The two sides never talked seriously about either Jenrry Mejia or Wilmer Flores.

2. If the Lee trade gets completed, the Mets will be fully focused on a starter elsewhere. Yes, they like Roy Oswalt. But Mets officials continue to say that Houston is unwilling to pay anything but a small amount of the $15 million Oswalt is due this year, the $16 million next or the $2 million buyout on a $16 million option for 2012, but are still insisting on major prospects.

That is why the Mets remained focus on Ted Lilly of the Cubs. They see him as the best fallback position after an obvious ace such as Lee or Oswalt.

3. The Mariners really liked pitcher David Phelps, who was recently promoted from Double- to Triple-A. But the Yankees refused to include Phelps or even a starter such as Ivan Nova or Hector Noesi. The Yankees offered a package, instead, that is no more than three prospects and possibly just Jesus Montero and David Adams.

4. After the 2007 season, the Yankees did not make a big move for Johan Santana because philosophically they did not feel it proper to give up big prospects and then pay a top-of-the-market contract to keep the player. They felt it was only proper to do one or the other. Yet they are potentially doing both with Lee (if they sign him in the offseason). So what is different this time?

Yankees officials simply feel that their farm system is in a different place today than it was back then. For example, they have the catching and second base depth organizationally to move Montero and Adams. Also, for Santana, the Yankees would have had to include Phil Hughes and Melky Cabrera. They felt they had no other prospect nearly as good as Hughes, and his loss would be devastating. And Cabrera was the starting center fielder and the Yankees felt they would have had to go outside the organization to add a center fielder through free agency or yet another trade.

Now they don’t have to touch the major league roster to get Lee.

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HARDBALL UPDATE NO. 3

1. Just concentrate on Jesus Montero. That is the key to this whole trade. Seattle determined that if it had to trade Lee it would have to get a huge hitting prospect back in exchange, and if the prospect were a catcher all the better.

Montero, despite some struggles in Triple-A this year, is a huge hitting prospect; one of the top 10 in the game. Seattle cares about the rest of the package and – for example – really likes David Adams. But the winner of this derby for Lee was going to be the team that put the best cost-effective, young, promising hitting prospect in the deal.

Seattle went round and round for a few weeks, but no other team was going to do as well as Montero in the Mariners’ mind and that is why they acted yesterday.

2. Last year, when the Yankees inquired on Jarrod Washburn, Mariners officials asked for Austin Jackson and either Manuel Banuelos or Zach McAllister. The Yankees thought Jackson was far too much to give up for a No. 4 starter type. But the fact that the Mariners liked Banuelos and McAllister could be a clue who a third person in a deal for Lee would be behind Montero and Adams.

I don’t think the Yankees would budge on Banuelos, whom they like a great deal. But McAllister, who has been ordinary at Triple-A, is probably someone they would sacrifice as the third piece here because they believe they have better pitching prospects coming.

3. There has been a lot of buzz about a three-team trade. But the Lee deal is strictly between the Yankees and the Mariners. If it is completed, the Yankees will take the extra time afforded by the All-Star break to determine what to do next.

The two main options are either to trade Javy Vazquez or put Phil Hughes in the bullpen, and the Yankees have not made a final determination on either.

At this point there are 16 teams besides the Yankees that are serious playoff contenders, and most need pitching. So the Yankees could find a market for Vazquez. He is pitching well again. He is owed about $5 million the rest of this season. He is likely to be a Type-A free agent, so an acquiring team would be in position to get two first-round draft picks, as well.

I have no idea if the Mets would be interested and if the two New York teams could do a deal, but Omar Minaya was the GM in Montreal with Vazquez and likes him.

Remember that Vazquez finished fourth in the NL Cy Young voting last year, so I can certainly see NL teams very interested in obtaining him. I would put the Cardinals and Phillies right near the top of that list.

The Yankees obviously would prefer to deal erratic A.J. Burnett, but it is borderline inconceivable that anyone would obtain the righty with him being owed $16.5 million annually through 2013.

The other option is Hughes to the bullpen. That is a tough choice for the Yankees. Clearly they want Hughes to get a full season in as a starter this year so that he has no innings restrictions in 2011 as a member of the rotation. However, if the Yankees retain Lee, CC Sabathia, Vazquez, Burnett and Andy Pettitte, Hughes probably becomes the odd-man out. Which is not the worst option for the 2010 Yankees.

Set-up relief is a problem for the Yankees this year, in part because of the erratic nature of Joba Chamberlain. Hughes was arguably the best set-up man in the majors last season, so he would instantly bring stability in that area. Plus, Mariano Rivera pulled out of the All-Star Game because of leg and side issues, so Hughes provides some insurance in case Rivera needs more rest or even a DL stint.

4. One reason the Yankees have had their eye on Lee and keeping him long-term is because they imagine a 1-2 of workhorse aces of Lee and CC Sabathia – who are pals, by the way – would enable them to break in young starters on the back end more comfortably.

Both Vazquez and Pettitte are free agents after the season, and Pettitte is always talking about retiring. If Pettitte comes back next year, then the Yankees would just line up with Sabathia, Lee, Pettitte, Burnett and Hughes. But if Pettitte did not come back, the Yankees could try to break in a Ivan Nova or David Phelps, or even keep Sergio Mitre and see what he looked like for 30 starts.

Then behind those starters, the Yankees have another whole wave of starting prospects they are very excited about headed by Dellin Betances, and followed by Andrew Brackman, Hector Noesi, Graham Stoneburner, Banuelos and Adam Warren.

joel.sherman@nypost.com