When Kevin Millwood signed a minor league contract with the New York Yankees, the deal included a clause that he could opt out on May 1 if he wasn't on the 25-man roster. Millwood wasn't on the 25-man roster a week ago and allowed six runs in two innings in his next minor league start, so - and this might surprise you - the Yankees didn't add him to the 25-man roster before the deadline.
So Millwood has indeed opted out of the deal, electing to become a free agent rather than hang around in the Yankees organization, waiting for an opportunity. Even though his stuff isn't what it was and his results have been mediocre to date, one imagines he'll be signed by somebody else before long.
The Yankees have been worried about Phil Hughes, but with Freddy Garcia and Bartolo Colon pitching well in the rotation, there simply wasn't room or reason for them to bring Millwood up.