The pitcher is guaranteed $750,000 under the deal, which was reached Tuesday night ahead of the deadline for teams to offer 2015 contracts to unsigned players on their 40-man rosters.
The Yankees have traded left-hander David Huff to the Giants for cash, two days after he was designated for assignment by New York to make room for Japanese ace Masahiro Tanaka.
The Yankees defeated the Astros in 14 innings and have a long winter of questions ahead of them.
David Huff was ineffective as he have up nine runs on Saturday. The Red Sox continued their dominance over the Yankees, taking three of three games so far this series.
“It’s been an up-and-down year for Phil,” manager Joe Girardi said after Tuesday’s 6-4 win. “Huff’s been throwing the ball well and we’re just going to make the change.”
Hughes’ start was pushed back to Monday, but he only pitched 1 1/3 innings before rain hit the Bronx. David Huff took the ball for the Yankees when play resumed and got the win, allowing just one run on five hits over 5 2/3 innings.
R.A. Dickey pitched into the seventh inning, Jose Reyes sparked Toronto’s offense and the Blue Jays snapped a 10-game losing streak against the New York Yankees with a 5-2 victory on Monday night.
Injured New York Yankees infielders Mark Teixeira and Kevin Youkilis are ready to start minor league rehab assignments. Both players could rejoin the Yankees as early as Friday after playing for Trenton on Wednesday and Thursday.
CC Sabathia surrendered seven runs in seven innings as the Yankees lost to the Rays on Sunday.
David Huff can fill two roles for the Yankees as a much-needed lefty arm and bullpen innings eater.