The 23-year-old made his major league debut with the New York Yankees in 2015, when he had a 5.14 ERA in seven games in relief before season-ending surgery to remove bone spurs from his left elbow. The Yankees selected Lindgren out of Mississippi State in the second round of the 2014 amateur draft.
Lindgren had elbow ligament-replacement surgery in August after appearing in six games with Class A Tampa. He was released by the Yankees on Friday.
He gets a $425,000 signing bonus, payable on Jan. 15, as part of the deal announced Sunday along with a $600,000 salary next year. He also can earn award bonuses.