The Yankees, meanwhile, are planning to retain left-handed relieverAndrew Miller, according to reports.
There is no immediate timetable for a Chapman trade, though any deal would presumably need to be completed by the Aug. 1 trade deadline.
Known for a fastball that can reach 105 mph, Chapman was suspended for the first 30 games of the season under Major League Baseball's domestic violence policy for his involvement in an alleged incident in October.
Before the suspension was handed down, the Cuban-born lefty was acquired by the Yankees in January from theCincinnati Redsin exchange for four minor leaguers. The 28-year-old, seven-year veteran has 20 saves with a 2.01 ERA, 44 strikeouts and 0.89 WHIP this season. He agreed to a one-year contract for $11.325 million in February to avoid salary arbitration.
Miller, 31, has a 1.45 ERA with 74 strikeouts and a 0.76 WHIP. He is under contract through 2018.
Fox Sports first reported the Yankees' plan to deal Chapman.
Information from ESPN's Andrew Marchand and Buster Olney was used in this report.