Until lawyers and accountants representing George Steinbrenner and Joe Torre can finalize Torre’s three-year contract for $16 million, the Yankees’ coaching picture is in a state of flux.

“We have to get a manager first,” GM Brian Cashman said yesterday when asked when hitting coach Gary Denbo’s replacement would be hired. “None of our staff has been offered a contract until the manager gets done.”

Rick Down, a former Yankee hitting coach under Buck Showalter, is considered the front-runner for the job Denbo held for one season and lost due to what the Yankees perceived as a lack of in-game communication with their hitters.

Denbo refused to say what his plans are, but industry sources say he has been offered a scouting job and will accept it shortly.