Ted Lilly, who was placed on waivers last week according to multiple reports, will not be traded, per Jon Heyman of Sports Illustrated on Twitter:
ted lilly was claimed but pulled back, so hes staying with LA. the yankees were at least 1 of the claiming teams.
By pulling Lilly off waivers, the Dodgers cannot trade him for the rest of the season. He will be a free agent this offseason after completing the final year of a four-year, $40 million contract he signed with the Cubs before the 2007 season.
Lilly was acquired by the Dodgers from the Cubs on July 31 with Ryan Theriot and $2.5 million in cash, in exchange for Blake DeWitt and minor leaguers Brett Wallach and Kyle Smit. Lilly won his first five starts as a Dodger before finally losing, in Colorado on Sunday. With the Dodgers, he is 5-1 with a 3.29 ERA, and on the season he is 8-9 with a 3.59 ERA.