HOUSTON -- Jeff Bagwell walked into his meeting with club owner Drayton McLane and general manager Tim Purpura on Tuesday and said, "Are you sure you don't want to pick up the option?"

He was kidding, of course, and his question was received with a chuckle by McLane and Purpura. That was a light moment before the Astros made an announcement that was not at all unexpected but still carried somewhat of a sad message, because officially, Jeff Bagwell is done as an active Houston Astros player.

The Astros declined the option on Bagwell's contract for the 2007 season on Tuesday and will instead pay the $7 million buyout of the option. The Astros had until Wednesday to make that decision.

A retirement announcement was not attached to this revelation from the Astros, even though Bagwell is expected to declare his career over at some point in the near future.

"Not immediately," Bagwell's agent, Barry Axelrod, said. "I talked to Jeff for the first time about this recently. I said, 'Assuming they don't pick the option up, what's next?' He said, 'In all likelihood, retirement.' But we're not there yet."

Bagwell first met with McLane last week, and again on Tuesday. The Astros' decision not to pick up his option was what Bagwell described as "all part of the process."

In other words, he was anything but surprised.

"Not one bit," he said.

Bagwell was unable to play in 2006, the final year of his contract, because of a degenerative arthritic condition in his right shoulder, an injury he had been dealing with since 2001.

Bagwell attempted to make a comeback during Spring Training last season but announced late in March that he was unable to play and instead went on the disabled list, where he remained for the entire '06 campaign.

He and McLane had a very public dispute regarding the insurance policy the club bought when Bagwell signed his extension in 2000. Although the extent of the damage to the relationship is unknown, it appears that McLane and Bagwell are prepared to go forward and work out a personal-services contract that would keep Bagwell in the organization.

"We'll sit down with him later and talk about what additional roles are available," McLane said. "Player development is such an important part of an organization, and we'd like to develop a role for Jeff."

Bagwell may be interested in coaching on the Major League level someday, but that could be years from now. He has two daughters, ages 5 and 3, and he's in no hurry to be away from home now that he can be more of a full-time dad for the first time in his children's lives.

But it's likely he'll resurface as a special assistant to Purpura, in a similar role as Nolan Ryan and Roger Clemens, once Clemens retires for good.

"It would be good for both sides, because of my familiarity with the organization, both the people and the players," Bagwell said. "My heart is with the organization. I care about the Astros. I hope we can find some way to work together.

"I'm too young and too attached to everybody in the clubhouse to walk away."

When Bagwell is ready to start the next chapter of his career, he'll be welcomed with open arms.

"When Jeff came to us and said he couldn't play [during Spring Training]," Purpura said, "he said, 'I'd like to stay around the club. I think I can help some of the young hitters, there are some things I see that I think I can pass along.' And I said, 'Absolutely.' We'd love to have him with the club. You don't become a Hall of Fame-type player without the ability to judge talent as well, and he has that ability."

Although Tuesday's announcement was a shock to no one, it does end the tenure of the greatest offensive players in franchise history.

Bagwell, a four-time All-Star, played in 15 Major League seasons, from 1991 to 2005, winning the National League Most Valuable Player Award in 1994 and the National League Rookie of the Year Award in 1991, one of only nine players in NL history to win both awards in a career.

Bagwell ends his Astros career as the club's all-time leader in home runs, RBIs and walks.

"If Jeff had played with us last season, it might feel even more final," Purpura said. "The way I'm looking at it, and hopefully Jeff is and certainly Drayton is, he may be gone as a player but he certainly will not be forgotten as an important piece of the organization. It's my very sincere hope and expectation that he'll be around a lot, that he'll be around the organization.

"You hate to lose a player of the caliber of Jeff Bagwell. But injuries occur and they cut short careers. It's a shame, and it's nobody's fault."

Added McLane: "Jeff has been the heartbeat of the Houston Astros both athletically and with his accomplishments. With his style of play, Jeff was not a real vocal person, but he showed how baseball should be played. He lifted the Houston Astros and lifted me, and inspired me to get an even better team. He was so important as a Houston Astro, a player and a leader."

In other Astros news, Purpura acknowledged that he has contacted the agents of free agents Carlos Lee and Alfonso Soriano. He also senses that the club is close to signing Craig Biggio to a one-year contract, and an announcement could arrive as early as next week.

"I certainly hope so," Purpura said. "We hope to get it done before he would be in position to have to file [for free agency]. I hope even if it doesn't get done by then, that it will be done sooner than later."