Garcia will receive a $1.5 million base salary if he makes the big league club. He can earn $3.6 million in possible incentives, topping out at 30 starts, according to a source. It also lets Garcia opt out by March 29, according to a report.
Garcia, 35, has a career 133-87 record with a 4.13 ERA in 12 big league seasons. He went 12-6 in 28 starts with the Chicago White Sox last season.
Garcia is expected to compete for a spot at the back end of the rotation for the Yankees, who have CC Sabathia, A.J. Burnett and Phil Hughes in the first three spots and still are waiting to hear whether Andy Pettitte will return to pitch in 2011. Ivan Nova and Sergio Mitre are among the other candidates in the mix for spots in manager Joe Girardi's rotation. Garcia, Nova and Mitre will have to fight off challenges from recently acquired right-hander Bartolo Colon and several prospects the Yankees believe are nearly big league ready.
Garcia bounced back from three injury-interrupted seasons to pitch well for the White Sox last season. The Yankees got a close-up look at him when he threw seven impressive innings to beat
them in Chicago on Aug. 27. Garcia also lost at Yankee Stadium in late April.
Garcia enjoyed successful, durable years early in his career with Seattle. He went 17-8 as a rookie in 1999 and was 18-6 with an
American League-leading 3.05 ERA and 238 2/3 innings in 2001. He was an All-Star for Seattle in 2001 and 2002.
Jerry Crasnick is a senior writer for ESPN.com. Information from The Associated Press was used in this report.