per rotoworld and fox Sports Ken Rosenthal:

"According to FOXSports.com's Ken Rosenthal, the Dodgers and Indians are in serious discussions about a trade that would send Cliff Lee and Victor Martinez to the Dodgers for a package including either Clayton Kershaw or Chad Billingsley.

James Loney would also be involved, which makes sense because Martinez would play first base most of the time in L.A. We imagine that the Indians would prefer Kershaw, who will be a lot cheaper than Billingsley over the next few years. It's certainly be a fascinating trade if it gets done. "