Pettitte typically likes to drag out negotiations, but the Yankees are in position to have another excellent season and he would have been taking a huge risk by playing games with upper management.
Pettitte, who turns 38 on June 15, went 14-8 with a 4.16 ERA in 32 starts during the regular season, then 4-0 with a 3.52 ERA in the postseason, winning the clinching game of all three Yankees' playoff series.
The addition of Pettitte doesn't mean the Yankees are not going to pursue other options for their rotation. With CC Sabathia, A.J. Burnett, Andy Pettitte, and Joba Chamberlain in the rotation, the fifth spot could go to several players.
Chien-Ming Wang struggled mightily this past season, but is 55-26 with a 4.16 ERA in his career. However, he isn't expected to be fully healthy until midseason 2010, so it is possible he will be non-tendered.
Phil Hughes was great out of the bullpen, but that was more of a pleasant surprise for the Yankees than something planned. From what I've heard, Hughes will be given a shot to crack the starting rotation.
The Yankees are keeping tabs on Rich Harden, Kelvim Escobar, and Justin Duchscherer, an indication that they may add a cheap veteran as a safety net in case Hughes is not ready for the rotation.