Peavy holds a full no-trade clause, effectively giving him the right to choose his next team if the Padres want to move him. He prefers to stay in the National League, and the Cubs and Braves are two of his acceptable options.

The Braves' interest in Peavy could revive if they lose the bidding for free-agent right-hander A.J. Burnett, but talks between those teams broke down several weeks ago.

The Yankees and Angels are two other teams that Peavy might consider joining, but the Yankees have signed CC Sabathia and they plan to add another free-agent pitcher. The Angels are more interested in adding offense, but a team official told FOXSports.com's Gerry Fraley on Thursday that the team has put together a package for the Padres to consider in return for Peavy.

For the Cubs, the addition of Peavy would have been a luxury. The team's rotation already includes Carlos Zambrano, Ryan Dempster, Rich Harden and Ted Lilly. The Cubs' next step will be to pursue a left-handed hitting outfielder.

Peavy was 10-11 in 2008 with a 2.85 ERA.

Chicago Cubs News News » Pads GM: Cubs' pursuit of Peavy is over
Pads GM: Cubs' pursuit of Peavy is over
The Cubs' pursuit of Jake Peavy is over. MLB Winter Meetings