NEW YORK -- Phil Hughes and the Yankees have agreed on a one-year, non-guaranteed contract, avoiding salary arbitration.
Hughes, 26, was 16-13 with a 4.23 ERA in 32 starts with the Yanks last season and was arbitration-eligible for the third and final time.
The deal is worth $7.15 million for Hughes, who is entering an important year as he could be a free agent after the season. Hughes earned $3.2 million last season.
New York has three arbitration-eligible players remaining: pitchers Joba Chamberlain, Boone Logan and David Robertson.
The Yankees have not been to arbitration since 2008, when they defeated pitcher Chien-Ming Wang in a hearing.
Bryan Hoch is a reporter for MLB.com. Follow him on Twitter @bryanhoch and read his MLBlog, Bombers Beat. This story was not subject to the approval of Major League Baseball or its clubs.