5:08pm: Hughes' contract is worth $7.15MM, according to Mark Feinsand of the New York Daily News (Twitter link).
4:39pm: The Yankees and Phil Hughes have avoided arbitration with a one-year contract, Chad Jennings of the Journal News reports. Terms of the deal between the Yankees and the CAA client were not announced.
Hughes had a projected salary of $5.7MM following a season in which he posted a 4.23 ERA with 7.8 K/9 and 2.2 BB/9 in 191 1/3 regular season innings. The right-hander was arbitration eligible for the third and final time after earning $3.2MM in 2012.