The Yankees have agreed to a contract with Joe Girardi to become the team's next manager and an official announcement could come as soon as Tuesday, sources told ESPN The Magazine's Buster Olney.

Girardi's contract is expected to be in the three-year, $6 million range.

According to Olney, one person Girardi would want on his staff would be former Cubs pitcher Mike Harkey, perhaps as pitching coach.

Girardi caught for the Yankees from 1996-99, served as a bench coach in 2005, then managed the Marlins the following year and was NL Manager of the Year. He kept a young team in contention until September, then was fired, apparently for clashing with owner Jeffrey Loria and others above him.

The 43-year-old Girardi last summer turned down an offer to be the Baltimore Orioles' manager, choosing instead to spend time with his father, who had health problems.

"Joe Girardi is a good man," Joe Torre said Monday on "Late Show with David Letterman." "He's got a feel for this organization."

Torre declined a one-year offer to return at a reduced salary after leading the team to four World Series championships and 12 playoff appearances in as many seasons.

Girardi was the first to interview on Oct. 22, followed by bench coach Don Mattingly on Tuesday and Tony Pena on Wednesday. Pena won AL Manager of the Year in 2003 after the Kansas City Royals (83-79) posted their first winning season since 1994 -- Hank Steinbrenner told The Times that Pena was "definitely under consideration."

Mattingly will not accept a position on the Yankees coaching staff, Marchand and ESPN The Magazine's Buster Olney are reporting.

"Don was extremely disappointed that he wasn't the organization's choice to fill the manager's vacancy," Mattingly's agent, Ray Schulte, said in a statement.

Sources say the Dodgers are expected to fire Grady Little and would like to hire Joe Torre as his replacement.

If Torre is hired, Mattingly would likely move with him to Los Angeles as a coach -- joining the organization that drafted his son, Preston, in 2006.

Information from The Associated Press is included in this report