It was just reported on MLB trade rumors.com
Now it seems to be confirmed by other sources. If this is true...
Yankees told they're out of Lee sweepstakes; signs point to Phils
The Yankees have been told they are out of the Cliff Lee sweepstakes, and signs are pointing that the 2008 AL Cy Young Award winner will sign with the Philadelphia Phillies.
Yankees out; signs point to Phillies signing Cliff Lee - MLB - SI.com
Phillies Agree To Sign Cliff Lee
The wait is over. Cliff Lee has agreed to sign with the Phillies, according to MLB.com's T.R. Sullivan. The deal is worth about $100MM over five years, according to Joel Sherman of the New York Post (on Twitter). That's far less that the $150MM, seven-year deal the Yankees offered (Jon Heyman of SI.com reporting on Twitter).