The New York Yankees and the New York Mets have begun negotiations in the hunt for Japanese free agent slugger Hideki Matsui, local dailies reported Friday.

The New York Post said Yankees officials started talks with Matsui's agent Arn Tellem on Thursday and, with the Mets' interest in the 28-year-old outfielder, "the stage could be set for a delicious bidding war between the fierce rivals."

The New York Times, quoting a baseball official familiar with the talks, reported that the Mets spoke with Tellem "about Matsui's probable asking price and were not scared off by it."

"The Mets could make Matsui an exception to their financial plan if they 'decide he's the one special circumstance,' " the newspaper quoted the official as saying.

Boston Red Sox and Baltimore Orioles have also expressed interest in Matsui, the three-time Central League MVP who became a free agent after winning the home run and RBI titles and helping the Yomiuri Giants win the league and Japan Series crowns this year.