Interest remains between the Yankees and free agent third baseman Todd Frazier, a pair of sources with knowledge of their correspondence have told NJ Advance Media.

But the team's mission to stay beneath the $197-million payroll luxury tax threshold for the 2018 season has kept the sides from speaking much this offseason, according to one of the sources.

Frazier, who has made teams aware he's seeking a multi-year deal, has continued to speak with multiple clubs. It's unclear how much money he wants. On Tuesday, the Associated Press reported the Yankees' projected payroll currently stands at about $178 million. Frazier made $12 million last season.

Keeping payroll below $197 million would reset for 2019 the team's luxury tax penalty, which currently hits the team at an extra 50 cents on each dollar it spends beyond the threshold.

The Yankees will also likely keep money aside for call-ups and potential midseason pickups or trades. The team was also "working real hard at" adding another starting pitcher at the Winter Meetings, manager Aaron Boone said at the time. The team has since signed lefty CC Sabathia to a one-year deal and is thought to be seeking at least one more starting pitcher.

The sources spoke on the condition of anonymity in order to speak freely.

The Yankees and Frazier would appear to be a fit, but at what cost?

The Yankees have holes at third base and second base. General manager Brian Cashman has said the team could look internally to fill the positions.

Those options include three promising youngsters with little-to-no big-league experience (top prospect Gleyber Torres, a shortstop; third baseman Miguel Andujar; and utility man Tyler Wade) and experienced major-league utility man Ronald Torreyes.

But the Yankees could prefer to fill at least one of the slots with someone more experienced, considering its early standing as a favorite to win the American League East.

Frazier, a Toms River native and Rutgers star, had a big impact on the Yankees' run to Game 7 of the AL Championship Series last year. Acquired from the White Sox at the trade deadline, Frazier provided an instant jolt of energy, even creating a rally gesture (thumbs down) that became somewhat of a trademark to the team.

His results on the field were mixed. In 66 regular season games, Frazier hit just .222 but added 11 home runs and a .788 OPS. In 13 postseason games, he hit .186 with a homer and a .558 OPS. Frazier is generally regarded as a good defender at third base. He's said he'd be willing to play elsewhere in the infield, too. He's spent time working at second base this offseason.

Frazier, who helped lead Toms River to a 1998 Little League World Series title, has said he'd "love" to return to the Yankees but that he's keeping his options open.

"At the end of the day, I just want to play baseball," Frazier said Dec. 16. "I would love to play for the Yankees. I would love to play for any team. Like I said, we've been talking. My agency has been doing a heck of a job talking to a lot of teams for me. We've got a lot of great talks and hopefully at the end, something comes to fruition soon."

Brendan Kuty may be reached at bkuty@njadvancemedia.com. Follow him on Twitter @BrendanKutyNJ. Find NJ.com Yankees on Facebook.