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FORT LAUDERDALE – The Mets appear to be falling out of the race for Orel Hershiser. A source familiar with the negotiations said the Cubs, who are desperate to replace injured Kerry Wood, are the front-runners to sign the former Cy Young Award winner.

The Mets made a bid for Hershiser on Monday and were expecting to get some good news yesterday regarding the 40-year-old righthander. But as the morning passed, it looked more and more as if the team more in need of his pitching services would be the one to make the higher bid.

“The Cubs have to have him,” the source said. “They lost too much when Wood went down. They need someone like Orel.”

Repeated calls to Robert Fraley, the agent for Hershiser, went unreturned yesterday. It is believed Hershiser, who is still working out with the Indians, wants more than anything to pitch for a contender and the Mets would fill that requirement. But so do the Braves, Cubs, Cardinals and, to a degree, the Giants, all of whom have made offers to Hershiser.

The Devil Rays and Marlins are interested, as well, but have only an outside chance.

Mets GM Steve Phillips has been open about the fact he is looking for more starting pitching, but yesterday would not comment on any negotiations with Hershiser.

Also, other events in Mets camp may mean the club is less willing to pay the price tag for Hershiser, believed to be in excess of $2.5 million. Hideo Nomo apparently cleared irrevocable waivers yesterday without any teams taking him. That means the Mets may still be responsible for all or part of his $2.925 million salary.

And it works the other way, too. If the Mets don’t get Hershiser, they may be more willing to hold on to Nomo and pay his salary.

Phillips was courting Hershiser during the offseason, but gave up when it became clear he would rejoin the Indians after a season in San Francisco. But Hershiser had an agreement with the Indians that if he wasn’t going to make the starting rotation, they would allow him to sign with another team.

Pitching for the Giants last year, Hershiser went 11-10 with a 4.41 ERA after going 14-6 and 4.47 the year before with the Indians. He won the 1988 Cy Young Award after a season in which he went 23-8 with a 2.26 ERA for the Dodgers.

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