The New York Yankees have a $180 million decision on their hands after ace Gerrit Cole exercised his opt-out clause Saturday morning – and they have precious little time to make it.

The Yankees must inform Cole and agent Scott Boras by Sunday night, two persons with the direct knowledge of the contract told USA TODAY Sports, on whether they will give him a one-year extension to void the opt-out or allow him to immediately become an unrestricted free agent.

The persons on the condition of anonymity because they weren't authorized to speak publicly.

Cole has four years and $144 remaining on his original nine-year, $324 million contract, but he’s willing to walk away believing he would get more in the free-agent market.

If the Yankees give him the extra year, his contract turns into a 10-year, $360 million deal, the richest for a pitcher in baseball history.

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Cole, 34, certainly has been one of the best pitchers in baseball in his first five years of his contract, winning the Cy Young award in 2023, but he didn’t make his season debut this year until June 19 because of nerve inflammation in his elbow. He wound up making 17 starts in 2024, going 8-5 with a 3.41 ERA, striking out 99 batters in 95 innings.

He was exceptional in the postseason, yielding a 2.17 ERA in 29 innings with 22 strikeouts, and gave up just one earned run in 12 ⅓ innings in the World Series. He had a no-hitter until the fifth inning of Game 5 when the Yankees made two errors – as well as a mental error by Cole failing to cover first base on a ground ball – leading to five unearned runs and a New York loss.

The Yankees could save the money owed Cole and instead choose younger starters on the free-agent market, but Corbin Burnes and Blake Snell also are represented by Boras, which makes it difficult to pass on Cole. Other starters on the market include Max Fried, Yusei Kikuchi, Jack Flaherty, Sean Manaea, Luis Severino and Nick Pivetta.

The Yankees, who must still decide on how much they’re willing to pay in their pursuit of free agent outfielder Juan Soto, are expected to provide the extra year to Cole, taking him through the 2029 season when he will turn 40 years old. Yet, a Yankee official cautioned that no decision has been made.

Elsewhere on Saturday, the Yankees officially declined first baseman Anthony Rizzo's $17 million option for 2025, activating a $6 million buyout and picked up the 2025 option on reliever Luke Weaver, an easy decision after the right-hander's stellar postseason.

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This article originally appeared on USA TODAY: Gerrit Cole contract opt-out: Will Yankees bring back Cy Young winner?