Sources are saying that the Reds have traded Homer Bailey to the White Sox for Jermaine Dye:

A noteworthy one involving the Cincinnati Reds is making the rounds — pitcher Homer Bailey for Chicago White Sox outfielder Jermaine Dye.

A major-league source close to the situation told The Dayton Daily News on Sunday, Dec. 7, “The deal is done and will be announced this week.”

The Reds are in the market for an outfielder and moving Bailey makes sense. The 22-year-old righthander, the team’s No. 1 draft pick in 2004, has not lived up to high expectations and some club officials believe a change of venue would be best for him….

Dye, 34, is a 12-year veteran with a .278 career major-league average after hitting .292 last season in 154 games.

He is a right-handed bat, something the Reds need, and he hit 34 homers with 96 RBIs playing for the White Sox in homer-friendly U.S. Cellular Field.

Anyone think this is a good deal? The floor is yours….

UPDATE: As noted in the comments, the White Sox are denying that the trade has happened…

A source familiar with the talks rejected a report in the Dayton Daily News quoting a “major-league source close to the situation” that a deal to send Sox right fielder Jermaine Dye to Cincinnati for pitcher Homer Bailey “was done and would be announced this week.”

The source said the Reds were reluctant to take on Dye’s $11.5 million salary even though they need a right-handed hitter of his caliber. The source added that the Sox were seeking more prospects besides Bailey, who was 0-6 with a 7.93 ERA in eight starts and was 4-7 with a 4.77 ERA at Triple-A Louisville.

But Bailey remains an intriguing prospect because of his 95 m.p.h. fastball and Sox general manager Ken Williams’ penchant for acquiring top prospects who could benefit from a change of scenery.

Stay tuned.

UPDATE 2: Now the Reds are denying it. Something may happen, but it appears at this point that someone is taking Hal McCoy for a ride with that initial report.