Roy Halladay, Phillies Talking Contract Extension as Trade Looks Likely

Jim Salisbury reports that the Phillies are "actively" talking contract extension with the representatives for Roy Halladay, while Andy Martino is reporting that Halladay and his agent have Philadelphia.html" target="_blank">checked into a Philadelphia-area hotel.

Salisbury says a source told him that Halladay is expected to take a physical exam this week and that there were indications Monday that Cliff Lee could be traded.

Speculation arose in the last couple days of baseball's Winter Meetings in Indianapolis that the Phillies were back at the head of the sweepstakes to acquire the 32-year-old right-hander.

FOXSports.com says that the situation could be resolved this week and that the Phils and Blue Jays are talking a blockbuster that would send Doc to the Phillies while sending Lee to a third team. A straight trade is still possible according to Ken Rosenthal and Jon Paul Morosi.

The Phillies would be willing to trade Lee, who they traded four prospects for at the deadline, because he will become an unrestricted free agent after this season and will likely test the free agent market.

According to Jon Heyman, Lee told Ruben Amaro Jr. that he would take no discount in signing a contract extension, while Halladay may be willing to take less than Johan Santana or CC Sabathia to play for a winner who plays close to his home in Florida.

More to come when more details become available, but it looks like Halladay will be traded to the Phillies within the next couple of days.

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