The Yankees and Andrew Bailey have agreed to an incentive-laden minor league, Buster Olney tweets.
Bailey had surgery in July to repair a torn labrum in his shoulder and the Red Sox were comfortable letting him walk. Bailey managed to record just 44 innings after being acquired by the Red Sox from Oakland in a 2011 winter trade.
Following the surgery, Bailey likely won't be ready to pitch until mid-May at the earliest.
There were reportedly more than 15 teams interested in Bailey's services, but in the end, the Yankees end up poaching their second Red Sox of the offseason. The Yanks signed Jacoby Ellsbury earlier in the winter.