Giambi

The Oakland Athletics have dropped their opposition to a no-trade clause in a new contract for Jason Giambi -- the main sticking point to Giambi not re-signing with the club last spring -- the San Francisco Chronicle reported in Tuesday's editions.

"We've told Jason and (agent) Arn Tellem," A's general manager Billy Beane told the Chronicle. "That's no longer an issue."

That doesn't mean it's certain Giambi will be back in an Oakland uniform next season. Giambi and Tellem had said in May that it would now take more than the six-year, $90 million deal to which Giambi had agreed in the spring if the A's would include a no-trade clause. The A's held back on the no-trade clause until now, and Giambi took the "hometown discount" off the table.

"He's going to test the (free agency) waters," Beane told the newspaper. "He's earned that right. He could well be the MVP again this year. But I'm still optimistic. The three of us have a good relationship, so there's trust and good feeling in the negotiations."

Beane hasn't heard back from Giambi, who officially becomes a free agent after the conclusion of the World Series, but that neither surprises nor bothers him.

"I'm sure Jason is decompressing after the pressure of the season and the divisional series, as we all are," Beane said.

The A's were favored by most to beat the New York Yankees in the Division Series, but lost in five games after winning the first two in New York.

Beane is waiting for the resolution of the Giambi situation before he negotiates with his other two free agents, center fielder Johnny Damon and reliever Jason Isringhausen.

"It's probably impossible for us to sign all three, given our limited budget," Beane said.

Isringhausen would be replaced by either Jim Mecir, Luis Vizcaino or a closer-by-committee system.

If Damon leaves, Terrence Long would move back to center field. Adam Piatt, who virtually lost an entire season because of meningitis, would be the leading candidate for left field.

Damon's spot in the batting order might be taken by second baseman Esteban German, the latest prodigy from the A's farm system. German, who will turn 23 in December, hit .284 with Double-A Midland in 92 games and then took his game up a significant notch in 37 games with the Triple-A Sacramento River Cats, batting .377 and stealing 16 bases in 18 attempts.

There are no Giambi replacements in the A's system. Jason Hart, for whom the A's still have high hopes, struggled in his first year at Triple-A, hitting .246 with 19 homers in 133 games. Beane won't divulge his backup plan if Giambi signs with another team, but he likely would try to acquire a power-hitting first baseman.

Both Damon and right fielder Jermaine Dye have told the Royals' Mike Sweeney that they have enjoyed their stay with the A's, although Damon has said more than once he is unlikely to remain with the A's if Giambi leaves.