10:37pm: Phillips has a no-trade clause that allows him to block a deal to the Yankees but the Reds did not ask him to waive his no-trade, tweets Ken Rosenthal of FOX Sports. Meanwhile, the Yankees continue to say that they are reluctant to trade Gardner, who will earn a little more than $4MM in his walk year (link).

10:05pm: Before the Yankees turned down the proposed swap, Phillips asked for his contract to be re-opened to pay him more money to agree to the deal, a National League source tells Jon Heyman of CBSSports.com (on Twitter).

9:22pm: Both Brandon Phillips and Brett Gardner have seen their names pop up in trade rumors recently, but Jon Heyman of CBS Sports reports (via Twitter) that the two of them actually had their name in the same deal. The Yankees, according to Heyman, turned down a Phillips-for-Gardner swap that was proposed by the Reds.

Phillips, 32, regressed to a .261/.310/.396 batting line with 18 homers in 2013. Always one of baseball's best defenders at second base, Phillips didn't disappoint on that front, turning in a strong +8.5 UZR/150 mark. The Yankees are a logical suitor for Phillips, given the fact that they just lost Robinson Cano to the Mariners late last week. However, though he's cheaper than Cano, Phillips is still owed $50MM over the next four years — his age-32 through age-35 seasons.

Gardner, 30, also saw his role come into question due to the Yankees' free agent decisions. New York inked Jacoby Ellsbury to a massive seven-year, $153MM contract, giving them an outfield mixture of Ellsbury, Gardner, Ichiro Suzuki, Alfonso Soriano and Vernon Wells. Gardner is viewed as superior to most of those options and likely appeals to Cincinnati because he could play center field for a season while top prospect Billy Hamilton gets some additional minor league seasoning. Gardner batted .273/.344/.416 with eight homers, 24 steals and a league-leading 10 triples in 2013. That would make him a dynamic leadoff option to replace Shin-Soo Choo atop Cincinnati's lineup while delivering elite center field defense.

The trade would fill a need for both teams, so it'll be interesting to see if they revisit the framework down the line, perhaps adding other pieces to make it more appealing to the Yankees.