Garcia, 35, signed a minor league deal in February and delivered a surprisingly strong 3.62 ERA in 146 2/3 innings. The 13-year veteran posted 5.9 K/9, 2.8 BB/9 and a 36.4% ground ball rate for the Yankees, spending part of August on the disabled list with an index finger injury.
Though the Yankees have locked up C.C. Sabathia, their search for starting pitching continues. Sabathia and Garcia will join A.J. Burnett, Ivan Nova and Phil Hughes in the team's projected 2012 rotation.