The Giants have offered Tim Lincecum a two-year, $40MM contract and the pitcher's representatives have countered with a two-year, $44MM offer, reports Tim Brown of Yahoo Sports (via Twitter). The small gap between the two offers leads Brown to believe that an agreement will be reached.

Andrew Baggarly of the San Jose Mercury News reported yesterday that "significant progress" had been made between the two sides since they filed their arbitration figures (Lincecum for $21.5MM, the Giants for $17MM). A two-year contract would cover both of Lincecum's remaining arbitration years and also fit Lincecum's stated preference for short-term deals, though the Giants had also explored an eight-year extension with the two-time Cy Young Award winner earlier this winter.