Mark Feinsand of the New York Daily News talked to one baseball official (presumably not with the Yankees) who believes the Yankees are "going hard" after Manny Ramirez. That official sees the Yanks willing to offer three years, while other execs see them stopping at two years, $50MM. Another source told Feinsand that Brian Cashman isn't keen on Manny but Hank and Hal Steinbrenner are. Feinsand wonders whether the team's interest in Ramirez is one reason they've put the Mike Cameron trade on hold.
You'll find a differing point of view from Joel Sherman and Ken Davidoff, who do not see the Yankees signing Manny. By the way, Jon Heyman talked to a friend of Manny's who dismissed the idea of retirement.