The Twins exchanged contract offers with free-agent reliever Eric Gagne this week but halted those talks just when Gagne was ready to meet their price, persons familiar with the negotiations told the Star Tribune on Wednesday.
A person close to Gagne said the former Cy Young Award winner was willing to sign a one-year, $3 million deal with about $500,000 in incentives for innings pitched but was told the Twins were moving in a different direction.
Twins General Manager Bill Smith declined to comment, keeping with his policy on every negotiation, but there were indications the Twins had broken off talks with Gagne and were instead exploring trade options for bullpen help.
Gagne, 33, signed a one-year, $10 million deal to be Milwaukee's closer last year but wound up losing that job to Salomon Torres, while going 4-3 with a 5.44 ERA.
Gagne did prove effective in a setup role for the Brewers in September, however, going 0-1 with a 3.09 ERA. His fastball was clocked at 92 miles per hour that month, and he maintains one of the game's best changeups.
The Twins have been looking for relief help with Pat Neshek set to miss all of 2009 while recovering from elbow surgery.
With about 90 free agents still unsigned, the prices for several former stars have dropped.
Gagne won the 2003 National League Cy Young while notching 55 saves and posting a 1.20 ERA as the Dodgers' closer.
His talks with the Twins included additional incentives for 30 games finished, in case he were to assume the closer role if Joe Nathan were injured. Still, the only risk for the Twins would have been the $3 million in guaranteed salary.
• Free-agent third baseman Joe Crede worked out for scouts in Arizona on Wednesday, and the Twins were expected to have a scout in attendance. Like Gagne, Crede's agent is Scott Boras.

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