The Phillies will get Halladay from Toronto, Action News has learned. In return they send minor league phenom Kyle Drabek, outfielder Michael Taylor, and catcher Travis d'Arnaud to the Blue Jays. Then, the Blue Jays will trade Taylor to Oakland.
The trade would involve sending ace Cliff Lee to the Seattle Mariners.
From the Mariners the Phillies would get pitching prospect Phillippe Aumont, minor league outfielder Tyson Giles, and pitcher Juan Ramirez.
However, Lee's agent told Action News that his camp was caught very off-guard by this deal. They believed they were working toward a contract extension with the Phillies.
Action News caught up with Halladay on Tuesday both when he went in for his physical, and when he came out. However, he wouldn't confirm anything about the trade.
"I can't right now guys. I'll catch you later," he said to Action News' Jeff Skversky.
With this trade comes a contract extension for Halladay, reportedly a three-year deal worth some $60 million.
The 32-year-old Halladay is the most prized pitcher on the trade market. A six-time All-Star and the 2003 AL Cy Young Award winner, the right-hander went 17-10 with a 2.79 ERA for the Blue Jays last season. He led the majors with four shutouts and nine complete games while throwing 239 innings, second to Detroit's Justin Verlander (240).
Halladay would be a huge addition for the aggressive Phillies, who won the 2008 World Series and repeated as NL champs this year, when they lost the World Series to the New York Yankees in six games.
The Phillies are thought to be a preferable fit for Halladay because they hold spring training in Clearwater, Fla., near his offseason home.
Aware they probably couldn't afford to keep Halladay beyond next season, the Blue Jays shopped their ace before the July 31 trade deadline. The Phillies were thought to be involved in talks involving Halladay at that point, but instead they landed Lee from the Cleveland Indians for four minor leaguers.
Lee was a big reason Philadelphia won its second consecutive pennant, going 4-0 with a 1.56 ERA and two complete games in five postseason starts.
AP Sports Writers Rob Maadi, Ronald Blum and Mike Fitzpatrick in New York and AP freelance writer Ian Harrison in Toronto contributed to this report.