The Rangers have completed a deal with the Mariners for ace Cliff Lee only hours after a potential Yankees-Mariners trade fell through, sources said.

Texas is sending Justin Smoak in a package to Seattle. The switch-hitting first baseman entered this season as one of the most coveted prospects in baseball. In 70 games with the Rangers this year, Smoak is hitting .209 with eight home runs, 34 RBIs and 29 runs.

Mariners reliever Mark Lowe will join Lee as part of the trade to Texas. Seattle will pay the remaining $4 million on Lee's contract, which expires after this season.

Lee, the 2008 AL Cy Young Award winner, owns an 8-3 record this season with a 2.34 ERA.

The Rangers have recalled Chris Davis to take Smoak's place at first base.

It appeared that the Yankees were moving toward a deal for Lee earlier on Friday, but talks began to fall apart late in the afternoon. New York offered catcher Jesus Montero, infielder David Adams and a third prospect in basically a take-it-or-leave-it scenario.

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