FORT MYERS, Fla. -- Rick Reed is staying with the Minnesota Twins.

Reed, slated to be the fourth starter in a rotation that's already one of the strongest in the league, withdrew on Friday the trade demand he filed following the World Series.

The pitcher has guaranteed salaries of $7 million in 2002 and $8 million in 2003, the final seasons of a $21.75 million, three-year contract that also contains an $8 million club option for 2004.

"To be honest with you, I didn't want to lose that money, so I made a decision," Reed said after pitching 4 1-3 innings in a 7-5 loss to Toronto. "I'm happy to wear this uniform. I'm just glad the whole thing's over and we can move on."

If Reed had not withdrawn the demand by midnight ET Friday, he would have been able to become a free agent if the Twins hadn't dealt him. He had the right to file the demand because he was a veteran traded during a multiyear contract.

"I had that right, just like you have that right to salary arbitration or you have that right to declare free agency," Reed said. "I had that right and I exercised it. Nothing happened, so I'm a Twin. Now I need to find a place to live."

General manager Terry Ryan said at the beginning of spring training he would explore trade possibilities but would not guarantee the option year on Reed's contract.

"Rick Reed gives us some finality to his situation," he said. "The important thing is that you can plan. We kind of know who we have now. Players have rights in their contract and sometimes they exercise them and sometimes they don't. It's part of the rules. When we made the deal, I certainly knew the rules. These things historically have a way of working themselves out."

Reed was 4-6 with a 5.19 ERA in 12 starts for the Twins last year after going 8-6 with a 3.48 ERA in 20 starts for the Mets. Right fielder Matt Lawton went to New York in the trade and was dealt during the offseason to the Cleveland Indians.

"I don't think anyone in Minnesota has seen what he is capable of doing," Ryan said. "The transition from the National League to the American League is difficult. The transition from grass to turf is difficult.

"We have a good rotation and there's no doubt that he's got some of the experience and playoff background that we don't have here," Ryan said. "With his 200 innings or so that he pitched last year, this is a luxury that we haven't had in this organization for a long time as far as pitching depth."

Notes The Twins signed former Pittsburgh second baseman Warren Morris to a minor league contract. Morris, considered a future star after finishing third in the 1999 NL Rookie of the Year voting, was cut by the Pirates Thursday. If Morris makes the team, he'll get a $275,000, one-year contract and a chance to earn $100,000 in performance bonuses. ... Minnesota released INF Kurt Abbott before the game to give him time to sign with another team. Twins manager Ron Gardenhire and Ryan said they're comfortable with Denny Hocking and Jay Canizaro as reserve infielders. Canizaro is coming back from a knee injury that kept him out all of last season. ... 3B Corey Koskie, recovering from a bone bruise in his right wrist, has started swinging a bat and is expected back within a week to 10 days. ... RHPs David Lee and Doug Bochtler were reassigned to minor league camp.