CBS Sports' Jon Heyman reports the contract will be worth $52 million. Earlier on Monday, Fox Sports' Ken Rosenthal reported the Yankees were close to a deal with the 30-year-old. The team acquired Headley from the San Diego Padres ahead of last season's trade deadline.
After joining the Yankees last season, Headley hit .262 with six home runs and 17 RBIs in 58 games. In total, Headley hit .243 with 13 home runs and 49 RBIs last season, which included 77 games with the Padres.
Before coming to New York, Headley played more than seven seasons with San Diego. He finished fifth in National League MVP voting in 2012, when he also earned Gold Glove and Silver Slugger honors.
The San Francisco Giants were also reportedly interested in Headley's services.
The Yankees finished last season 84-78, second in the American League East behind the Baltimore Orioles. New York missed the postseason for the second consecutive season.
- Stanley Kay