He has 48 hours to make a decision.
If Podsednik comes back at $2 million, that's actually a really good deal... if he's coming back as a fourth outfielder. If the Dodgers expect him to play 150 games in left field and bat leadoff or second, then it's a mistake.
If he declines, he'd be a free agent. As a Type-B free agent, the Dodgers would be foolish not to offer him arbitration. Potentially netting a supplemental first-round pick for Podsednik looks awfully good right now.
Here's what I said about Podsednik in part one of my off-season preview:
"Podsednik: When he came over from the Royals at the deadline, I thought it was a decent pickup. The fact that he is a Type B free agent made the deal a lot more acceptable. He didn't play much of the last month as he was injured. In spite of that, I would not be opposed to him coming back as a fourth outfielder. My fear is the Dodgers will give him 600 PAs as the regular left fielder, which would be a mistake. If he voids his option or the Dodgers buy him out, they can always offer him arbitration. A team are less likely to hesitate to sign him because he is a Type B free agent. If he comes back, he's a solid fourth outfielder -- if the Dodgers use him in that manner. Arbitration: Yes, without a doubt"
It's potentially win-win for the Dodgers, provided he comes back as a fourth outfielder. We'll see what happens.