ESPN.com's Jerry Crasnick is reporting that the Yankees have agreed to a one-year, $900,000 deal with pitcher Sergio Mitre.
Crasnick reports that the deal includes an additional $200,000 in incentives.
The deal with Mitre beat Thursday night's 11:59 p.m. deadline to tender contracts to players for the 2011 season.
Mitre, 29, was a candidate for the fifth spot in the starting rotation during spring training, but lost out to Phil Hughes. Mitre finished 0-3 with a 3.33 ERA in 54 innings. Mitre pitched in 27 games last season, making three starts.
The Yankees still need to make decisions on pitchers Joba Chamberlain, Dustin Moseley, Boone Logan and Hughes before the deadline. The Yankees will undoubtedly tender contracts to Chamberlain and Hughes. Logan also seems likely, given the Yankees' lack of lefthanders in the bullpen. Moseley should be the interesting one to watch.