NEW YORK — Frank Thomas' $10 million option for next year was declined Friday by the World Series champion Chicago White Sox, who chose to give the two-time AL MVP a $3.5 million buyout.

The 37-year-old designated hitter and first baseman exercised his half of the mutual option for next season on Monday, giving the team five days to make a decision. The White Sox could try to re-sign him for less money.

"There should be no question about the respect this organization has for Frank and all that he has helped us accomplish, including a World Series championship," general manager Ken Williams said in a statement. "He is the greatest hitter in White Sox history. At the same time, it is my responsibility to make the best decisions I can on behalf of the organization. Our plan now is to continue to speak with Frank and his representatives over the coming months as more information is known about his health."

Thomas, who has missed most of the past two years with foot and ankle problems, hit .219 with 12 homers in just 105 at-bats last season. He missed the first two months while recovering from surgery on his left ankle, then broke the ankle in July, ending his season.

A career .307 hitter with 448 homers and 1,465 RBI, Thomas is the team's leader in most offensive categories. He has spent his entire career with the White Sox and has said he wants to return.

"Obviously, our hopes are still that we'll be able to work something out with the White Sox. It would be ideal to see Frank retire as a White Sox," said Thomas' agent, Arn Tellem.

Chicago also agreed to a $650,000, one-year contract with backup catcher Chris Widger, a $150,000 raise from his base salary this year.

In other moves:

Rather than let second baseman Ronnie Belliard become eligible for free agency, the Cleveland Indians exercised his $4 million option. In his second season with Cleveland, Belliard hit .284 with 36 doubles and set career highs with 17 homers and 78 RBI. He had the AL's fifth-highest fielding percentage among second basemen.

"The best option is when a player picks it up himself by his level of performance," Indians general manager Mark Shapiro said. "He genuinely has a passion for the game and plays on a daily basis like he enjoys it. That is representative of the attributes we want in our players."

Outfielder Jose Cruz Jr. and the Los Angeles Dodgers agreed to one-year contract that guaranteed him $3.21 million.

Cruz was obtained from Boston in August and batted .301 with six homers and 22 RBI in 47 games. In a Sept. 7 game against San Francisco, Cruz become the seventh Dodger to homer from both sides of the plate in a game.

Cruz will earn $2.91 million next season, and the deal includes a 2007 club option at $4.5 million with a $300,000 buyout. He could earn an additional $300,000 per year in performance bonuses.

Seven players filed for free agency Friday, including New York Mets closer Braden Looper, Florida outfielder Jeff Conine, St. Louis outfielder John Mabry and Yankees left-hander Al Leiter. A total of 166 players have filed since the World Series, and about two dozen more are eligible to file by Thursday's deadline. Free agents can start negotiating money with all teams starting Nov. 11.