The veteran infielder arrived at George M. Steinbrenner Field on Thursday morning, tossing on a Yankees T-shirt and stowing a few personal items in his assigned locker before taking his physical.
"I'm happy the way things worked out," said Chavez, who inked a one-year, $900,000 deal with the Yankees earlier this week. "The team looks fantastic. It looks like we're in good position to win a lot of ballgames."
Chavez, 34, will return to the same role he held last year, serving as a backup first and third baseman. He spent a part of the winter working out with hitting coach Kevin Long, even as his Yankees return wasn't guaranteed.
While other teams did show interest, Chavez said that if the Yankees hadn't been among them, the six-time Gold Glove Award winner would have considered retirement. Chavez informed the Yankees that he intended to play in November.
"If it was going to happen, it was definitely going to be here for me," Chavez said. "This was definitely the spot I wanted to be in."
Chavez batted .263 with two home runs and 26 RBIs in 58 games for New York last season. Manager Joe Girardi said that he sees Chavez as a useful piece to offer rest to Alex Rodriguez and Mark Teixeira.
"He provided depth for us," Girardi said. "I actually thought when he got hurt [in early May], we missed him. He was playing really well for us. He plays an excellent third base and swings the bat. The big thing about Chavy is keeping him healthy."