Damaso Marte has consistently been one of the best left-handed relievers in baseball. However, he struggle in his brief time with the Yankees. He has a 7 million dollar option for 2008. If they want they could decline the option and offer arbitration to hopefully get a first and sandwhich round draft pick for him.
I think they should just pick up the option. They might be able to get more by trading him then by declining the option. Relievers like Marte who are good year after year are rare. Most guys are up and down.