The Yankees and Nick Johnson are reportedly closing in on a one year pact worth 5.5 million dollars. This probably signals the end to Johnny Damon in New York. Damon was looking for somewhere between 11-13 million dollars annually, and the Yankees were not interested in that whatsoever.
Johnson is coming off a pretty solid year for the Nationals and Marlins, especially after missing nearly the entire season in 2008.
Johnson will be the teams DH, and it is possible the Yankees will pursue Matt Holliday to play left field, a nice alternative to Damon.
However, the Yankees probably will play the market for Holliday, and stay close to the five year range the Cardinals seem to standing at. The Mariners are another possibility to sign for the three time All-Star.