The Red Sox and Roy Oswalt continue to have "mutual interest" in one another, according to FOXSports.com's Ken Rosenthal.

Oswalt previously stated he would prefer to sign with a team close to his Mississippi home, but all of his top choices now appear to be unrealistic landing spots due to budget constraints. Rosenthal notes that Boston ''hasn't ruled out the possibility of adding another starter'' and could look to solidify one of their remaining rotation spots behind Jon Lester, Josh Beckett and Clay Buchholz.

A source told Jeff Wilson of the Fort Worth Star-Telegram that the Rangers are unlikely to sign Roy Oswalt.

It comes as no surprise. Oswalt said a few weeks ago that he wanted to sign with either Texas or St. Louis, but the Rangers have a logjam in their rotation and don't want to move Matt Harrison to bullpen. The Cardinals still remain a possibility for the 34-year-old free agent right-hander.

Red Sox general manager Ben Cherington said Wednesday that adding a new pitcher is "unlikely."

"We wouldn't rule out adding a starter," said Cherington, "but I think it's unlikely at this point." The Red Sox have been linked recently to free agent right-hander Edwin Jackson, but he's thought to have better offers on the table from other organizations. And Roy Oswalt is said to prefer to pitch for either the Rangers or Cardinals.

Gordon Edes of ESPNBoston.com was told by a major-league source that the Red Sox still have a "great chance" to sign free agent right-hander Roy Oswalt.

This was the same source who told Edes last Friday night that Oswalt was signing with the Cardinals "soon," so take it with a grain of salt, but it's increasingly clear that the veteran right-hander is having trouble making a decision. While Oswalt would prefer to sign with the Cardinals or Rangers, both clubs already have full starting rotations, so they have little sense of urgency to break the bank. The Red Sox have a clear need and could promise him a spot in the rotation right away, so they remain an option by default.

According to Ken Rosenthal of FOXSports.com, the Cardinals have not made Roy Oswalt a financial offer "that the pitcher deems anywhere close to sufficient."

Oswalt has made it clear that he would prefer to pitch for the Cardinals or Rangers, but he's not an easy fit for either team. While the veteran right-hander is looking for a one-year contract in the range of $10 million, both clubs have the proper rotation depth to wait him out. If the stalemate continues, Oswalt may have to turn his attention to an alternative like the Red Sox.

T.R. Sullivan of MLB.com confirms that the Rangers met with free agent Roy Oswalt on Monday.

However, no big developments came from Monday's meeting, as Sullivan describes the situation as "ongoing and unresolved." The Red Sox and Tigers have also shown interest recently, but it's believed that the 34-year-old right-hander has narrowed his potential landing spots down to the Rangers and Cardinals.

According to MLB.com's Peter Gammons, Roy Oswalt rejected interest from the Indians and Blue Jays.

He also informed the Red Sox that he was not interested in playing in Boston. It is believed that Oswalt has narrowed his potential landing spots down to Texas (the Rangers) and St. Louis (the Cardinals). He's thought to be seeking a one-year, $10 million contract.

The Rangers are still planning to meet with Roy Oswalt on Monday.

The Cardinals are closing in on an agreement with Roy Oswalt but are attempting to trade someone like Kyle McClellan to open up a bit more money for the veteran right-hander. If they can't lock Oswalt into a deal Sunday, it's very likely that the Rangers will be able to make an appealing pitch of their own. Oswalt recently turned down a one-year, $10 million contract from the Tigers. The 34-year-old was limited to 23 starts last season due to a back condition, but he still posted a quality 3.69 ERA and 93/33 K/BB ratio across 139 innings.

Jon Paul Morosi of FOXSports.com reports that the Cardinals don't have a deal in place for Roy Oswalt yet but "are trying to clear money to make it work."

Joe Strauss of the St. Louis Post-Dispatch has reported that Kyle McClellan is on the trade block. Cardinals GM John Mozeliak on Saturday denied that a deal for Oswalt was in place, but it's obvious the two sides have mutual interest. The righty is scheduled to meet with the Rangers Monday, but it sounds like he could be a Cardinal before then. Oswalt posted a quality 3.69 ERA and 93/33 K/BB ratio across 139 innings in 2011.

The Rangers have scheduled a meeting with Roy Oswalt for Monday, assuming he's still a free agent then.

Gerry Fraley of the Dallas Morning News says the Rangers have yet to make Oswalt an offer. It's clear Texas won't be the high bidder for the right-hander, but if he wants to give them a sweetheart deal, it might be hard for the team to pass it up. The Cardinals, Red Sox and Astros are also in the running for Oswalt.

FOXSports.com's Ken Rosenthal reports the Rangers have yet to make an offer for free agent Roy Oswalt.

Like the Cardinals, the Rangers have expressed interest but are ''not an obvious fit'' on paper. Oswalt recently turned down a one-year, $10 million contract from the Tigers. However, it is not yet known whether he'd be willing to take a hometown discount to pitch for Texas.

Cardinals GM John Mozeliak told Matthew Leach of MLB.com that rumors of an impending deal with free agent Roy Oswalt are "not true."

Multiple reports have suggested otherwise. MLB Network reported Friday that a deal between the two sides was ''very close,'' and ESPNBoston.com has since reported that Oswalt has "elected to stay in the National League" and is "likely" to sign with the Cardinals "soon." Other teams believed to be in the running for Oswalt include the Rangers, Astros, and Red Sox.

Roy Oswalt reportedly turned down a one-year, $10 million contract from the Tigers, according to Jon Heyman of CBSSports.com.

Heyman cites an unnamed source on the financial terms, but this confirms an earlier CBS report that Oswalt in fact turned down an opportunity to play in Detroit. The Tigers have at least one open spot remaining in their starting rotation, but may now look to stay in-house rather than add an established starter through trade or free agency.

Roy Oswalt's agent, Bob Garber, told Tim Dierkes of MLB Trade Rumors that there is "no chance" of his client moving to the bullpen.

Garber declined to comment on anything team-specific, but his stance indicates that the Cardinals are indeed the favorite to sign Oswalt. Assuming a deal gets done, Kyle Lohse and Jake Westbrook will be candidates to be moved from the starting rotation.

A major league source tells FOXSports.com's Ken Rosenthal that Roy Oswalt was ''not close to signing a deal with the Cardinals'' late Friday night.

This corroborates a report from the St. Louis Post-Dispatch that insists no deal is in place. The Cardinals' motives for signing Oswalt are unclear, as both Kyle Lohse and Jake Westbrook have full no-trade clauses and limited trade value. Lohse will earn $11.875 million in 2012. Westbrook is set to make $8.5 million.

Updating a previous item, Gordon Edes of ESPNBoston.com reports that Roy Oswalt has elected to stay in the National League and is likely to sign with the Cardinals "soon."

Edes previously reported that Oswalt was headed to the Cardinals, but he was told by a source that a deal is "not 100 percent." Meanwhile, Joe Strauss of the St. Louis Post-Dispatch reports that the Cardinals are insisting no deal is in place. Keep in mind that the 34-year-old right-hander has a history of back problems, so it's possible that some formalities stand in the way of an agreement. Stay tuned.

Gordon Edes of ESPNBoston.com reports that the Cardinals and Roy Oswalt have agreed to a contract.

Jim Duquette of MLB Network Radio on Sirius XM first indicated that the two sides were close. No word on the financial terms, but we'd suspect it's a one-year deal in the $5-10 million range, possibly with some performance-based incentives. The 34-year-old Oswalt was limited to 23 starts last season due to a back condition, posting a 3.69 ERA and 93/33 K/BB ratio across 139 innings. It will be interesting to see what happens with the Cardinals' starting rotation, as Kyle Lohse and Jake Westbrook are both owed big money this season and have no-trade clauses in their contracts.

Joe Strauss of the St. Louis Post-Dispatch confirms the Cardinals' interest in Roy Oswalt.

Jim Duquette of MLB Network Radio on Sirius XM reported Friday evening that the Cardinals and Roy Oswalt were close to an agreement. Strauss didn't specify whether the two sides were close to a deal, but wrote that the veteran right-hander is expected to make a decision soon. The Red Sox, Astros and Rangers are also reportedly in the mix for his services.

Jim Duquette of MLB Network Radio on Sirius XM reports that the Cardinals and Roy Oswalt are close to an agreement.

The specifics of the offer aren't known, but Joe Strauss of the St. Louis Post-Dispatch reported this week that the Cardinals made an offer to Oswalt earlier this winter "approaching $5 million." According to Duquette, the Red Sox, Astros and Rangers remain in the mix. The Astros would be a weird landing spot considering that the alternatives are all expected to contend, but the veteran right-hander was originally drafted by the club in 1996 and spent the first 10 years of his major-league career there. For what it's worth, Michael Silverman of the Boston Herald hears that Oswalt will not make a decision this week regarding where he'll sign. Stay tuned.

ESPN's Buster Olney reports that the Red Sox have a one-year offer out to Roy Oswalt for around $5 million.

The Red Sox also have an offer out to Edwin Jackson, though the specifics aren't known. As for Oswalt, he would reportedly prefer to pitch for either the Cardinals or the Rangers. Joe Strauss of the St. Louis Post-Dispatch reported Wednesday night that St. Louis made an offer to Oswalt earlier this winter "approaching $5 million," but believes that the Rangers will ultimately step up with a contract in the $7-8 million range.