LAKE BUENA VISTA, Fla. -- Free agent pitcher Ted Lilly, who earlier in the day ruled out returning to Toronto, agreed Wednesday night to a $40 million, four-year contract with the Chicago Cubs.
Lilly's agent, Larry O'Brien, made the announcement at baseball's winter meetings.
Lilly, a left-hander, crossed the Blue Jays off his list Wednesday and had narrowed his possible destinations to the Cubs and New York Yankees, O'Brien told ESPN.com.
"We're interested in starting pitching and Ted is one of the guys that we feel we made a very nice offer to," Piniella told SportsTicker. "He's competitive, he loves to pitch and we'd love to have him in Chicago."
O'Brien planned to meet with Yankees general manager Brian Cashman on Wednesday night. It was not clear if that meeting took place.
Toronto continues to pursue free agent Gil Meche as a possible No. 3 starter behind Roy Halladay and A.J. Burnett.
Lilly, 30, has a career 59-58 record in eight major-league seasons with Montreal, the Yankees, Oakland and Toronto. He went 15-13 with a 4.31 ERA for the Blue Jays last season.
In other developments Wednesday night, Cubs utilityman Freddie Bynum was acquired by the Baltimore Orioles for a player to be named.
The 26-year-old Bynum hit .257 with four homers, 12 RBI and eight steals last season in 71 games. He was on the disabled list from June 25 to Aug. 21 because of right shoulder inflammation.
Baltimore also finalized a $900,000, one-year contract with backup catcher Paul Bako, who could earn $150,000 more in performance bonuses.
Bako, 34, hit .209 for Kansas City last season and has a .236 average in nine big league seasons with eight teams.
Also Wednesday, Toronto was close to signing outfielder Matt Stairs to a one-year contract, according to a baseball official with knowledge of the negotiations. The deal is expected to be announced Thursday.
Jerry Crasnick, who covers baseball for ESPN Insider, and ESPN.com senior writer Jayson Stark contributed to this story. Information from The Associated Press also is included.