He will play second base and bat eighth against the Toronto Blue Jays.
Torres, 21, ranks fifth in Keith Law's list of top 100 prospects.
Torres has hit .347 with 3 doubles, 1 triple, 1 home run and 11 RBIs in 14 games for Triple-A Scranton/Wilkes-Barre. He was removed from the RailRiders' 6-5 loss to Toledo on Saturday after six innings.
"Super happy. It's like dreams come [true],'' Torres said Saturday after he was told of his promotion, according to Times-Tribune in Scranton.
Torres, who is from Venezuela, called his parents and said he hoped they would make it to New York in time for Sunday's game against the Toronto Blue Jays.
Because of the timing of his call-up -- three days after a key deadline passed regarding Torres' major league service time for the season -- the organization will be able to keep the infielder under contractual control for another full season.
Torres now won't be eligible for free agency until 2024.
With Torres now in the fold, the Yankees have another glove that can help address some of the early-season woes that have befallen them defensively. New York entered play Saturday leading the American League in errors with 18.
Torres had one error in Triple-A this season and another during spring training.
Although Torres has predominantly spent his minor league career at shortstop, he also has played second base and third base. In recent days, he has gotten more work at third. During spring training, the Yankees gave him a hard look at second base, before Tyler Wade won the job.
Wade has appeared in 13 games with the Yankees but has made only one start in the past nine days. He is hitting .086 (3-for-35) with 11 strikeouts and three walks. He was assigned to Scranton in a corresponding move.
Third baseman Brandon Drury also has been getting treated for a migraine/blurred vision issue that has kept him out of action for the past two weeks. Although he has resumed batting practice and infield work, Drury still could be at least another week away from playing in games at the major league level. Miguel Andujar has filled in for him, but Torres' addition aids in the depth at third until Drury returns.
A native of Venezuela, Torres was signed by the Cubs as an undrafted free agent in 2013, when he was 16 years old. He quickly rose through Chicago's organizational ranks and was tabbed an MiLB.com organization All-Star three years after he signed.
In other moves Sunday, the Yankees called up right-hander David Hale from Scranton and designated outfielder Jace Peterson for assignment.
The Associated Press contributed to this report.