MLB

HE MIGHT BE STAY-ROD

ORLANDO – The last tiny, but real, lifeline between the Yankees and Alex Rodriguez still exists – arbitration.

When asked last weekend if the Yanks would offer arbitration to Rodriguez, GM Brian Cashman said, “of course.” But the idea was not based on retaining A-Rod. Cashman thought there was little possibility Rodriguez would accept a one-year deal.

“It is about the two draft picks,” Cashman said. “By offering arbitration, we get the first-round pick of the team that signs him and a sandwich pick.”

Teams have until Dec. 1 to offer arbitration to their own free agents, and players must accept or reject by Dec. 7. If the player accepts, he is deemed a signed player and would either negotiate a contract or have an arbitrator decide the outcome.

If a Type-A-rated player such as A-Rod rejects arbitration, the team losing the free agent is rewarded with the new signing team’s first-round pick (as long as the signing team finished with one of the majors’ 15 best records the year before) and a sandwich pick between the first and second rounds.

It is a very slim possibility that Rodriguez could accept the offer, in which case his agent would attempt to set a single-season salary record by asking for at least $30 million and possibly as much as $40 million.

But that would be viewed as Scott Boras/A-Rod failing to get the record multi-year deal they set out to score this offseason.

In addition, Rodriguez would lose such extra rights as his no-trade clause and, theoretically, could be dealt by the Yankees at any time.

If A-Rod accepted arbitration and the Yanks, thus, had exclusivity again with Rodriguez, it is conceivable the sides could try to negotiate a long-term deal.

But the Yanks likely would be insistent that any multi-year deal reflect the $21 million subsidy they had from Texas, but lost when Rodriguez opted out.

Boras had been resistant to the Yanks’ rights to continue to have that subsidy beyond the opt-out date.

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New Twins GM Bill Smith has yet to give his colleagues the impression he is seriously considering trading ace Johan Santana. Smith cited Oakland’s history of sticking with standouts such as Jason Giambi, Miguel Tejada and Barry Zito through their final season before free agency in a quest to make the playoffs.

“The A’s lost a lot of good players, but they kept them to take a shot at the postseason,” Smith said. “If that is our best option, we will do that.”

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Joe Girardi talked to the Yanks’ three main free agents: Andy Pettitte, Jorge Posada and Mariano Rivera.

“I am an optimist and I hope we have them all back in 2008,” Girardi said. “The club wants them all back, and in the back of their mind, I think they all want to come back. But this is the hard part of the game. They love being Yankees. They started out as Yankees and I am sure they would love to finish as Yankees. Not many guys get to do that.”

Cashman indicated that the reason they have told Pettitte to take his time in making a decision is because “if he had to make a decision, right now, he wouldn’t play [in 2008]. … Why push him to make a decision we don’t want?”

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Johnny Damon was concerned enough about his name coming up in trade talks, particularly for the White Sox’s Joe Crede, that he was expected to take advantage of the proximity of his Orlando-area home to these meetings to talk face-to-face with Boras, his agent. The Yanks appear to have no intention to deal Damon for Crede and, in fact, want Damon to be their regular leadoff hitter/left field next season.

As for Crede, the Yanks do not seem to be overly enamored with the righty hitter. White Sox GM Kenny Williams said the club is veering from its usual “aggressive” path and will consider all options for Crede and his heir apparent, Josh Field, including keeping them both. …

Marlins executive VP Larry Beinfest dampened the idea that the Marlins could be darkhorses to bring A-Rod home to southern Florida, saying, “We have no plans to speak with or engage in contract negotiations with Alex Rodriguez.”

joel.sherman@nypost.com