Wednesday's deal, which is not guaranteed, avoided salary arbitration. Players and teams without agreements are set to swap proposed arbitration salaries on Friday.
Hughes, who is eligible for free agency after next season, was 18-8 in 2010, slumped to 5-5 the following season as injuries slowed him, then rebounded to a 16-13 record last year.
New York's projected payroll is at about $198 million for 15 players, including $8.5 million the Yankees are paying Pittsburgh as part of last year's trade sending A.J. Burnett to the Pirates.
Williams reaches deal with Angels
ANAHEIM, Calif. (AP) -- Right-hander Jerome Williams and the Los Angeles Angels avoided salary arbitration by agreeing to a $2 million, one-year contract that more than doubles his pay.
The 31-year-old went 6-8 with a 4.58 ERA for the Angels last season in 15 starts and 17 relief appearances. He made $820,000.
Williams likely will start the season as a long reliever for Los Angeles this spring, with Jered Weaver, C.J. Wilson and new arrivals Tommy Hanson, Joe Blanton and Jason Vargas in the Angels' rotation.
Williams revitalized his career with the Angels in 2011 after four years out of the majors, earning a job as a starter for last season. An illness coinciding with a stretch of poor pitching knocked him out of the No. 5 rotation spot midway through the season, but he returned with strong relief performances.
The agreement was announced Tuesday.
Lopez, Outman agree to deals with Rockies
Lopez gets $1,762,500 under Wednesday's agreement, up from $515,000 last year. Outman received $675,000, an increase from $482,000.
Lopez was 6-3 with a 2.17 ERA for Houston last year and just eight walks in 66 1-3 innings. The 29-year-old was acquired by Colorado on Dec. 4 for right-handers Alex White and Alex Gillingham.
The 28-year-old Outman, obtained from Oakland in January 2012, was 1-3 with an 8.19 ERA in seven starts and 20 relief appearances for the Rockies.
Both were eligible for arbitration for the first time.
Four Rockies remain in arbitration: right-hander Jhoulys Chacin, outfielders Tyler Colvin and Dexter Fowler and infielder Jonathan Herrera. They are set to swap proposed arbitration salaries with Colorado on Friday.