Per ESPN:   http://sports.espn.go.com/mlb/news/story?id=3759182

Sources told ESPN The Magazine's Buster Olney the deal offered by the Yankees is now worth $160 million over seven years -- the most money ever paid a pitcher in major league history. The team had originally offered six years and $140 million.

 While a deal is not yet done, a source told ESPN.com's Jayson Stark there are "zero major road blocks" that would prevent the Yankees from reaching agreement with Sabathia. Not all terms of the deal are agreed to yet, the source indicated. Sabathia also would need to take a physical.

 The New York Post first reported Wednesday that Sabathia, the prize of this year's free-agent class, had decided to go with the Yankees after fielding offers from a number of teams.

 Sabathia had been courted by the Milwaukee Brewers, the San Francisco Giants and the Boston Red Sox. The Los Angeles Dodgers said that Sabathia, who lives in California, had expressed interest in playing there, too, although the team did not publicly make him an offer.

Also MLB.com:  http://mlb.mlb.com/news/article.jsp?ymd=20081210&content_id=3710546&vkey=hotstove2008&fext=.jsp

Inevitable...

EDIT:  I wonder if they'll waive the usual requirements of said physical.