INDIANAPOLIS - The Yankees announced that they have reached a deal with Andy Pettitte to bring the left-hander back for another year in pinstripes.

The two sides reached an agreement on one-year contract worth $11.75 million, a source said. This is a significant raise over the $5.5 million he made in base salary in 2009.

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For Pettitte, 37, it will be his fourth season back with the Yankees after a three-year stay with his native Astros in Houston, and his 13th season, overall, with the team that drafted him.

With Pettitte fortifying their starting rotation, the Yankees will stay engaged on free-agent starting pitchers -- more likely reclamation projects like Justin Duscherer, Rich Harden and Ben Sheets than a high-end target like John Lackey -- and in trade discussions with Roy Halladay.

However, Yankees general manager Brian Cashman is wary of depleting too much of his farm system after using trade chips to acquire Detroit’s Curtis Granderson.