The New York Yankees and catcher Russell Martin have discussed the possibility of terminating Martin's current contract and renegotiating a three-year deal, his agent Matt Colleran told ESPN New York.

According to Colleran the Yankees have proposed making Martin a Yankee through 2014, but negotiations remain in the early stages. Colleran spoke to general manager Brian Cashman on Wednesday and the two plan to meet again soon to further contract discussions.

Martin hit just .237 with 18 home runs and 65 RBI during the 2011 season, but made the AL All-Star team and would be one of the top catchers on the market if he hits free agency.

The Yankees are looking to move their salary under $189 million by 2014 for luxury tax purposes, and Colleran said Martin would be willing to take the salary limitations into consideration.

"We would be flexible in their budget constraints," Colleran said.

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