AP sources: Yankees and Mitre agree at $850,000

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NEW YORK (AP) — Pitcher Sergio Mitre and the New York Yankees have agreed to an $850,000, one-year contract that avoids salary arbitration, people familiar with the negotiations told The Associated Press.

The people spoke Wednesday on condition of anonymity because the team had not yet announced the deal.

New York had declined a $1.25 million option on the right-hander, who was not on the Yankees’ postseason roster.

Mitre, who turns 29 next month, had elbow ligament replacement surgery in July 2008 and agreed to a minor league contract with the Yankees last offseason. He sat out the first 50 games while serving a suspension for testing positive for a banned substance.

Mitre joined the Yankees in late July and went 3-3 with a 6.79 ERA in nine starts and three relief appearances.

Two Yankees remain eligible to file for arbitration: right-hander Chad Gaudin and left-hander Boone Logan, acquired last month from Atlanta along with right-hander Javier Vazquez in the trade that sent outfielder Melky Cabrera to the Braves.