12:41pm: The Orioles are closing in on a two-year deal with Balfour, tweets Ken Rosenthal of FOX Sports.

12:39pm: Things are heating up considerably today for Grant Balfour, according to Susan Slusser of the San Francisco Chronicle (on Twitter).

Recent reports have indicated that three teams have two-year offers on the table to Balfour, with the Orioles being the most aggressive team and the favorite to land him. Balfour reportedly wants to pitch for the O's, but he's holding out for a three-year deal. The Orioles are said to be set on two years, but last night they were said to be considering adding a vesting option to the deal as a compromise.