There’s an interesting situation developing in Philadelphia, where the Phillies are in serious talks with free agent Pedro Martinez, but have also been linked to Blue Jays’ ace Roy Halladay.

According to a report by SI.com’s Jon Heyman, the Phillies and Martinez may have already agreed to a $4 million contract, which would be a hefty price for a club that has also been linked to Halladay. If they take on a $4 million contract with Pedro, would the Phils still be willing to pursue Halladay, who’s owed $14.25 million this year and $15.75 million next year?

My guess would be no, unless Philadelphia has another trade scenario in their back pocket involving another pitcher. A likely candidate would be J.A. Happ, a 26-year old who has pitched incredibly well this season, posting a 5-0 record with a 3.04 ERA and 1.20 WHIP.

Maybe the Jays would be interested in a package that involved Happ and a couple of minor league prospects. If so, a rotation that included Halladay, Martinez and Cole Hamels would be awfully tough to beat in the second half of the season, although Hamels has struggled a bit this year.

We’ll see if the Phillies go through with the signing of Martinez and then if they drop out of the Halladay-running soon thereafter.