His 2007 option has been exercised. The Yankees are attempting to trade him and may have several reasonable offers in place. While he says he is being blocked from talking with George, he will comply with the Yanks and write up a list of teams he would prefer to be dealt to. Sheffield still is not happy with the move and would rather accept a 2-year extension thru 2009 from the Yankees to play first. The Indians, Athletics, Orioles, White Sox, Red Sox, Angels, Cubs, Giants, Rangers, Padres, Phillies and Tigers have varying amounts of interest in him. The Phils' Gavin Floyd, Ryan Madson and Jone Lieber have been linked in a deal with Sheff. One rumor had a 3-way deal, including San Diego and the Indians in which SD would have netted Kevin Kouzmanoff, the Indians would have received Sheff and the Yanks, Scott Linebrink. The Yanks rejected the O's offer of Kris Benson and reliever. The Yanks could be intriguied by Scott Linerbink, Gerald Laird or Wil Ledezma. Several sources indicate that the Padres may be the frontrunners to acquire him, but the Yanks turned down their offer of Scott Linebrink. One rumor had Jake Peavy going to the Yankees, but it was denied by Padres' CEO Sandy Alderson. At one point, they nearly dealt him to CLE for Kevin Kouzmanoff. Tigers are engaged in serious talks with NYY, as well. A deal could be struck sooner rather than later. The Yanks prefer to deal him to the NL.
That's from Ken Rosenthal
Why not jump in and deal Dunn to Philly for Gavin Floyd/Jon Lieber/Ryan Madson and Major League ready OF prospect