This past season, Hudson, 32, made a base salary of $3.38 million, but with incentives, he received close to $7 million as a member of the Dodgers.
According to a published report, the Nationals have offered Hudson $3 million, with incentives that could bring the value of the contract to $4 million.
According to the source, Hudson understood why it took until Feb. 22 to sign with the Dodgers last year. He was coming off a wrist injury and people in baseball were not sure if he was healthy. Hudson is 100 percent now and doesn't want to take a pay cut, because he feels he had a good season in 2009, hitting .283 with nine home runs and 62 RBIs for Los Angeles.
Hudson did not return several phone messages.
If they don't sign Hudson, the Nationals will turn their attention to Adam Kennedy, who had a nice comeback season in 2009, hitting .289 with 11 home runs and 63 RBIs with the Athletics. The previous two years, Kennedy played in a combined 202 games, mostly due to injuries.
Kennedy, 34, is best known for his years with the Angels. In 2002, he was the American League Championship Series MVP after hitting three home runs against the Twins in Game 5.
Kennedy said via phone that he hasn't heard from the Nationals in about a week. There hasn't been any serious talks with his representative.
"They basically let us know that they are kind of waiting on Orlando," Kennedy said. "They didn't put a timetable on it."
Bill Ladson is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.