Pettitte returns to Yankees

Andy Pettitte decided to pitch for the New York Yankees in 2008 and put off retirement.

Pettitte’s agent, Randy Hendricks, said that the 35-year-old left-hander had started telling teammates Sunday. Hendricks then informed Yankees General Manager Brian Cashman of the news.

The decision came as the Yankees set a Monday deadline for the Minnesota Twins to decide whether they will trade two-time AL Cy Young Award winner Johan Santana to New York for pitcher Phil Hughes, center fielder Melky Cabrera and a midlevel prospect.

“I want to get it done by [Monday night], one way or another,” Yankees senior vice president Hank Steinbrenner said.

Pettitte had declined a $16-million option last month, saying he needed more time.

New York had said it could wait until next month for Pettitte to make a decision. Cashman said the $16-million option was a standing offer.

The Yankees also finalized their two-year, $4-million deal with catcher Jose Molina and designated infielder Andy Phillips for assignment.

Cy Young Award winner Jake Peavy of the San Diego Padres could have a contract extension within the next several days.

“We’re moving toward it, but it’s not a done deal yet,” Peavy’s agent, Barry Axelrod, said.

Asked about reports that it would be a three-year extension, Axelrod said: “That’s one of the things we’re still trying to figure out.”

Along with former Dodgers owner Walter O’Malley, former commissioner Bowie Kuhn, former managers Dick Williams and Billy Southworth and ex-Pittsburgh Pirates owner Barney Dreyfuss also were elected to the Hall of Fame by the Veterans Committee.

Manager Whitey Herzog and umpire Doug Harvey each missed election by a single vote.

The Boston Red Sox and reliever Mike Timlin reached a preliminary agreement on a one-year contract worth $3 million. . . . The Tampa Bay Devil Rays traded outfielder Elijah Dukes to the Washington Nationals for minor league pitcher Glenn Gibson. . . . The Pirates claimed infielder Josh Wilson from Tampa Bay and pitcher Ty Taubenheim from Toronto and designated first baseman Brad Eldred for assignment. . . . Rich Levin, senior vice president of public relations for Major League Baseball, has been named the 2007 winner of the Robert O. Fishel Award for public relations excellence.