The Yankees acquired Capuano from the Colorado Rockies in July for cash considerations. The 36-year-old went on to make 12 starts for New York, going 2-3 with a 4.25 ERA and 55 strikeouts in 65 2/3 innings.
Capuano was reportedly considering signing with a team in Japan last month after playing in the 2014 MLB vs. Japan All-Star Series.
The left-hander began the 2014 season with the Boston Red Sox, making 28 relief appearances and earning an ERA of 4.55. He was released by the Red Sox on July 1 and signed a minor league deal with the Rockies three days later.
In 10 major league seasons, Capuano has a career 4.28 ERA and 1.342 WHIP.
New York went 84-78 last season, missing the playoffs and finishing second in the AL East.
- Molly Geary