The New York Yankees have failed to reach an agreement with Hiroyuki Nakajima.  Via MLB.com's Bryan Hoch:

"We unfortunately could not come to an agreement with Hiroyuki," Yankees general manager Brian Cashman said in a statement. "We wish him the best of luck during the upcoming 2012 season."

Nakajima is quoted as saying:

It is unfortunate we could not agree to a deal.  I want to thank the Seibu Lions for posting me and the New York Yankees for placing a bid on me.