This is just a really bad rumor by a REALLY bad reporter who obviously is just flat out lying about the situation.
How do I know this is just rumors??? Look at the numbers that were just leaked. Him asking for a 3 year $39 million contract is so ridiculous that it has to be false. He is price controlled for two more seasons. This year he is going to earn $4.3 million....next year at the VERY most he will make $10 million (and even that is really high estimation). That means he was asking the Twins for $25 million in order to get one extra year before his free agency year?!?
Nope. Its just really crappy reporting. The numbers are so far off it couldn't possibly be real.
The only other scenario is that the reporter misunderstood the situation and Liriano was asking for 3 years and $39 million for the years AFTER his contract is up and was really asking for a contract in the neighborhood of 5 year $54 million. But even that isn't all that realistic because the Twins aren't going to sign a guy with Liriano's injury history to a 5 year deal and his agent would have to know that and (if he had any sort of common sense) would have asked for a reasonable deal that only buys out the 1st year or two of his free agency years just to get that guaranteed contract locked up for a pitcher with a really questionable arm.
IMO they will resign Liriano to a 3 or 4 year deal AFTER this coming season (they will want to see him do it again and make sure that 2010 wasn't just a fluke) buying out his 1st 2 or 3 years of free agency. This is all just rumors that amount to little.
And also you can see how the Twins are setting it up IMO....Liriano officially hits the FA market and becomes expensive AFTER the 2012 season. Which just "coincidently" is the same year that Pavano and his contract falls off the books. Liriano will likely be the guy that takes over that "ace" starting pitching contract slot after 2012 that they have Pavano in right now.