UPDATE 4-Utay, Tribune also reach Cubs agreement-sources

* Agreement gives Tribune a second offer for Cubs

* Offer higher than Ricketts bid, but less cash upfront

* Tribune denies agreement with either party (Adds Ricketts' spokesman declining to comment)

By Ben Klayman and Megan Davies

CHICAGO/NEW YORK, July 7 (Reuters) - Tribune Co (TRBCQ.PK) has agreed to terms for the sale of the Chicago Cubs to a group led by private equity investor Marc Utay, giving the company two possible offers to submit to the bankruptcy court, two sources familiar with the sale process said on Tuesday.

It is the latest twist in a long-running effort by the bankrupt media company to sell the baseball team famous for its "lovable losers" image. Several people involved said Utay's renewed interest could be a way to pressure the Ricketts family into an improved offer.

On Monday, a source said Tom Ricketts and his family had agreed to terms for the purchase of the team and other assets for slightly less than the $900 million offered in January. The source called it a "handshake" agreement and not a signed document.

One of the sources reporting the Utay group's deal said the new offer is "a higher price but less cash upfront" than the Ricketts' bid.

"I don't think it's completely over yet," said the source, who asked not to be identified because the sale process is continuing. "By the same token, Ricketts has a real edge here."

Tribune, which has been trying to sell the team for more than two years to reduce the company's debt burden, said no agreements are in place.

"We have not reached an agreement on terms with either party," Tribune spokesman Gary Weitman said.

However, a source in Major League Baseball and another source familiar with the sales process said the draft agreement with Ricketts has been submitted for league review. Nothing has been sent in for Utay, the league source said.

These two sources said Tribune is telling the Ricketts family only its bid will be submitted to the court and baseball.

Utay and a spokesman for the Ricketts family declined to comment.

Tribune Co, which owns the Los Angeles Times and Chicago Tribune newspapers, filed for bankruptcy in December due to its heavy debt load and the weak U.S. publishing sector.

The company put the Cubs, the team's famous Wrigley Field home and a 25 percent stake in a local sports TV network, on the block in April 2007, when it agreed to an $8.2 billion buyout led by real estate magnate Sam Zell.