Can a free agent sign for one less year than his demand? For example signing for two when he's demanding three?

I think I saw this happen but I'm not sure since he may have lowered his demands overnight when I was sleeping. That said no other free agent that I was watching lowered from 3 to 2 years. That leads me to believe that someone offered him 2 and he might have signed less than his demanded 3.

Is it possible?

Found answer via trial and error. It works

Weirdly, this only works during the regular FA period. After the start of rule 5 day they will not take fewer years.

EDIT-- after the PM cycle 2 after the 8th game of Spring Training, they all only ask for one year anyway.

Yes, they will sign for 1 year less than they are asking IF the total value of the contract remains the same.

For example: Player asks for 3 yrs at $5M per year for a total value of $15M. Offer them 2 yrs at $7.5M per year and they will accept (after waiting several more cycles to see if anyone will give them an offer that totals more than $15M).

Total value of the contract (including any bonus) is more important than number of years.