According to 790 The Sports Animal in Houston, Randy Hendricks just told Associated Press that Pettitte has decided to play in 2007 and possibly beyond. He added that he is in negotiations with the Astros and Yankees and all other teams are "longshots". 790 reported earlier this afternoon that Tim Purpura had held a negotiation session with Randy Hendricks but details of that conversation were not available. Presumably they are setting the parameters for a 2 year deal.
So it looks like Pettitte will be an Astro for at least 2 more years. I honestly don’t see his family wanting to move to New York again and Andy’s father’s health is also a concern. It’s more likely that as one radio host in Houston suggested earlier today, Pettitte is playing the "Beltran game" in reverse–sorry Yankees, looks like you’re being used to drive up the price that the Astros pay Andy.