The Yankees can offer 3B Alex Rodriguez arbitration this winter, but don't expect A-Rod to take it. It's really a no-brainer for the Yankees because their are a couple draft picks involved. I doubt A-Rod would want a one year deal worth $30-40M in arbitration, because he could do horrible in 2008, or his MVP 2007 season stats could slip, and so would his next contract.
The Angels have said that they would like to have A-od, and they probably would have the money. The Yankees wouldn;t mind A-Rod going to the Angels because their 1st round pick isn't protected, but pobably wouldn't want the team across town the Dodgers to get A-Rod, because their pick is protected.
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