The left-hander has decided to retire and will make an announcement on Friday, a source told Michael Kay of ESPN Radio in New York on Thursday. The announcement will take place at Yankee Stadium, a source told The Associated Press.

The Yankees would not confirm the decision to ESPNNewYork.com.

Earlier in the off-season Pettitte told the Yankees to operate like they would if he were to retire.

The Yankees have signed a slew of veteran arms to minor-league deals hoping they make an impact at the major-league level in 2011.

A source close to Andy Pettitte tells me that there is a “very strong possibility” that Pettitte is going to pitch in 2011.  He is doing his usual preseason workouts and has had no physical issues thus far.

Jon Heyman of SI.com has heard something similar and Calcaterra notes that he and Heyman probably do not have the same sources.

I have a feeling Pettitte’s career isn’t quite over yet.

There are less than three weeks until pitchers and catchers are due to report to Spring Training.

There’s no question the Yankees need Andy Pettitte to return in 2011. Pettitte is a smart guy and he knows the Yankees need starting pitching. He’ll milk this as long as he can to get the biggest deal he can out of the Yankees.

As for Heyman’s final comment, I laugh at people who compare Pettitte’s situation to Favre’s. Pettitte doesn’t hold sobby press conferences. He doesn’t say he’s absolutely, completely and 100% finished. He doesn’t come back during the last week of Spring Training. He tells the Yankees that he needs time with his family to think it over. Maybe some teammates or members of the media get a whiff that Pettitte is leaning one way or the other, but he is no Brett Favre when it comes to retiring (or not retiring).

You don’t see Ed Werder stationed out in Deer Park, Texas, do you?

From New York Daily News:

According to a source, Rangers president Nolan Ryan recently reached out to Pettitte, who is now a free agent, to see if he could convince the veteran lefthander to pitch in his home state.

Pettitte spent the 2004-2006 seasons in his home state with the Houston Astros. Will he finish up his career in his hometown too? I can’t envision it. It will be Yankees or retirement for Pettitte.

But imagine if the Rangers beat out the Yankees for Cliff Lee and took Andy Pettitte away from the Bombers? Wow.