Yankees, Martin working on extension

The New York Yankees and catcher Russell Martin are discussing a three-year deal, his agent told ESPNNewYork.com.

Such an agreement would keep Martin in New York through 2014, though talks are preliminary.

Martin, 29, can become a free agent after this season. He batted .237 with 18 homers and 65 RBIs last year, and drew raves for his defense from manager Joe Girardi and general manager Brian Cashman.

The Yankees want to reduce their payroll to less than $189 million in 2014, which would earn huge luxury tax savings under the new collective bargaining agreement. Martin is willing to work with the team.

“We would be flexible in their budget constraints,” Colleran said.

Martin and the Yankees avoided arbitration last year by agreeing to a one-year deal worth $7.5 million, though Martin earned an extra $125,000 based on plate appearance incentives.

If Martin were to reach free agency, he and St. Louis’ Yadier Molina would be the top targets.