The Yankees announced the decision Monday, three days after general manager Brian Cashman said picking up Severino's option would be an "easy" decision.
"I haven't talked to anybody about it yet, but he's a really impactful pitcher," Cashman said Friday when asked whether the Yankees intended to exercise Severino's option. "So the answer to that would be an easy yes."
Severino, 28, went 7-3 with a 3.18 ERA in 19 starts this past season, his seventh with the Yankees. The two-time All-Star missed most of the previous three seasons because of shoulder and elbow injuries.