Infielder Stephen Drew and the Yankees have finalized a $5 million, one-year contract, a deal that puts him in position to become the team's starting second baseman.
Drew's agreement was reached Jan. 6 and announced Friday, after he passed a physical.
Outfielder Eury Perez was designated for assignment to clear room for Drew on the 40-man roster.
Drew, who turns 32 in March, was acquired by the Yankees from Boston on July 31. He hit .150 with three homers and 15 RBIs in 155 plate appearances for New York while making 34 appearances at second base and 12 at shortstop as a backup to Derek Jeter.
He batted .253 with 13 homers and 67 RBIs for Boston in 2013 as the Red Sox won the World Series, and then became a free agent. Drew didn't accept Boston's $14.1 million qualifying offer but couldn't find a deal to his liking as teams seemed reticent to part with a top draft pick.
Drew re-signed with the Red Sox on May 22 in a deal that paid him exactly $10 million for the remainder of the season, but he hit .176 with four homers and 11 RBIs in 39 games and was dealt to the Yankees at the trade deadline for third baseman Kelly Johnson.
Along with his salary, Drew can earn $1.5 million in performance bonuses: $500,000 each for 450, 500 and 550 plate appearances.
New York plans to platoon Didi Gregorius and Brendan Ryan at shortstop after Jeter's retirement.
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