ESPN thinks Joba will go back to the bullpen. They predict the starting rotation will have CC, A.J., Wang, (either Lowe, Pettitte, or Sheets), and Phil Hughes.
NY Times says the Yankees are still offering Pettitte the 10 million/year deal but time is running out. They will make an offer to Sheets if the medical record review is good, as for Lowe, Yankees hasn't met his 18 million/year asking price (Yankees think age is a factor, Lowe is 35 years old). As for Joba, so far NY Times still mention him as a starter.