The deal will be done upon Garza completing a physical.
Garza, 30, had 10-6 record with a 3.82 ERA, 1.24 WHIP and 136 strikeouts with the Texas Rangers and Chicago Cubs last season.
But he struggled once he got to Texas in a July trade. Garza was only 4-5 during his two months with the Rangers, with a 4.38 ERA. VERDUCCI: How the Yankees got Masahiro Tanaka, and what he'll really cost