The Cubs and Ted Lilly have reached a preliminary agreement on a four-year, $40 million contract, FOXSports.com's Ken Rosenthal is reporting.

Well, this afternoon's reports weren't entirely accurate if this is the case, as Lilly supposedly preferred a four-year, $40 million contract from the Yankees to four years and $44 million from the Cubs. However, it seems likely that part of those reports were true, and the Yankees simply decided it wasn't worth it, especially with Andy Pettitte potentially on the horizon.
Source: FOXSports.com