"We have to draw the line somewhere," Michael said. "I have no regrets saying we did not offer him a sixth year. We offered him a fantastic contract for five years. We really went out of our way to make a nice offer."

Gilbert was unavailable for comment because he was attending a dinner in Los Angeles last night, but Brian Cohen, one of his associates, said he thought the two sides were still negotiating. But when he was apprised of Michael's comments, Cohen said, "If that's what the Yankees are saying, so be it."

Before the Yankees withdrew their offer, the interest in Bonds from other teams had narrowed, if not disappeared altogether. Though Cohen insisted that four teams maintained interest in Bonds, the general managers of five teams -- the Cubs, Phillies, Royals, Dodgers and Angels -- said yesterday that they were not pursuing the former Pirates outfielder or were not prepared to spend the money it will take to sign him.

Furthermore, the Atlanta Braves, the team that seemingly was the front-runner to sign Bonds, said on Tuesday that they were no longer chasing him, either. The Braves' president, Stan Kasten, said Atlanta had dropped out of contention, but it is possible that withdrawal is only temporary in order to gain a negotiating advantage.

Michael said pitching would become his focus now that Bonds was out of the picture. He met with the National League Cy Young Award winner Greg Maddux and his agent, Scott Boras, for six hours Tuesday, and the former Cubs right-hander is believed to have been offered a five-year, $30 million contract by the Yankees. He is not expected to sign before the owners' winter meetings on Saturday because he is still considering other teams. Trades Still Possible