The San Francisco Giants are increasing payroll next year. By how much could determine the club's chances of re-signing Pablo Sandoval.

Giants general manager Brian Sabean confirmed Thursday the team has made an offer to the free-agent third baseman, but declined to say whether the club is willing to meet Sandoval's reported demands.

"We've engaged but I'll leave it at that," Sabean told reporters during the Giants' end of the year press conference. "Pablo's the only one we've engaged as far as an offer."

Sandoval is reportedly seeking a minimum of six years, according to the San Francisco Chronicle, but is apparently flexible on the contract's average annual value. The Giants third baseman is among the top position players available and is expected to generate interest from several big-spending teams.

"Pablo is 28," Sandoval's agent, Gustavo Vasquez, told the Chronicle. "He is still young. Maybe if he was 30 or 31 we could talk about four or five years. But he's 28. He deserves more than that."

Vasquez added that his client has spoken to a few teams since free agency began, including San Francisco.

The Giants also acknowledged they will increase payroll from $149 million for next season, but Sabean said the team is waiting on Sandoval before engaging in talks to bring back Jake Peavy, Ryan Vogelsong and Michael Morse.

"We've told both Peavy and Vogelsong we need time to sort things out," Sabean said. "So Pablo is the only one we've engaged as far as an offer, and the other free agents know where we stand as far as fleshing things out."

Sandoval batted .366 during the Giants' World Series run, breaking the single-season playoff record with 26 hits in 71 at-bats.