Yankees gearing up for offseason

TAMPA, Fla. -- New York Yankees general manager Brian Cashman is ready to start making offseason moves.

The 2009 World Series champions set their 2010 budget parameters during the third day of organizational meetings on Friday, which included, sources told ESPN.com's Buster Olney, a reduction in payroll.

The defending world champions, who had a payroll of $208 million in 2009, were, at year's end, expecting to reduce that number to around $185 million for the upcoming year.

"Now we'll go out trying to execute some game plans," Cashman said. "We have our priorities and we'll starting working through the winter."

New York signed free agent pitchers CC Sabathia and A.J. Burnett, and first baseman Mark Teixeira during the 2008 offseason. Cashman said there are not as many glaring needs this year, but added the Yankees are "not the perfect beast, either."

"Thankfully we have a lot of answers already on our roster, but there's still areas of need that we need to address," Cashman said.

Yankees left fielder Johnny Damon and 2009 World Series MVP, designated hitter Hideki Matsui, are both free agents. Left-hander Andy Pettitte hasn't announced whether he will return for next season.

"I'll talk with all the agents involved, as well as the other agents on the rest of the free agent market and at the end on the trade market," Cashman said.

Outside free agents like outfielder Matt Holliday and pitcher John Lackey could get some consideration during baseball's winter meetings next week.

"We'll meet with agents, meet with clubs," Cashman said. "You never know what will materialize."

The Yankees are also expected to monitor the trade status of Toronto ace Roy Halladay.

Senior vice president of baseball operations Mark Newman, who oversees player development, spent an hour during the final day of meetings Friday with Cashman and other high-level team officials at the Yankees spring training complex.

ESPN.com's Buster Olney and the Associated Press contributed to this report