Teixeira, 33, played in just 15 games this season, batting .151 with three homers and 12 RBIs. He initially sustained the injury in March while hitting off a tee with Team USA while preparing for the World Baseball Classic.
The injury was aggravated during the Yankees' West Coast trip in June, and a cortisone injection did not provide relief. Team physician Dr. Christopher Ahmad, hand specialist Dr. Melvin Rosenwasser and two other New York-based hand specialists concurred in recommending the season-ending surgery.
Approximately $7 million of Teixeira's $22.5 million salary was covered by insurance from the World Baseball Classic because he was injured as a participant.
Team president Randy Levine said that the responsibility for Teixeira's salary reverted to the Yankees when he made his season debut on May 31, but the Yankees also have insurance that will cover a majority of his 2013 salary.
Bryan Hoch is a reporter for MLB.com. Follow him on Twitter @bryanhoch and read his MLBlog, Bombers Beat. Kelly Erickson is an associate reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.