1) Martin's agent, Matt Colleran, told me that he and GM Brian Cashman spoke Wednesday. Cashman has since confirmed that.
Colleran said to me that he expects to give the Yankees a counter-proposal soon. Cashman said that he is open to continuing extension talks, but is waiting to hear back from Colleran.
2) The Yankees' initial offer was designed to be a three year deal, including this season. Since, the two sides have avoided arbitration by agreeing to a one-year, $7.5M contract. If a new contract were agreed to, the sides would rip up this year's deal.
3) CBS' Heyman tweeted the Yankees would do a three-year, $20M deal. I have not been told exact numbers, but Heyman's figures seem like the range I would expect based on the conversations that I have had.
4) Ultimately, if the Yankees won't go higher, I tend to doubt that a deal will be done. When I mentioned three-years, $24-30M to one Yankee insider, they thought that was too much of a spread.
5) One more point: The Yankees can't finagle salaries so they are artificially lower in 2014 to reach their goal of being below $189M that year. The way the luxury tax works, it is based on average annual value. So they really can't do any discounted deals.