The veteran outfielder will re-sign with the club for a reported $7.5 million.
Outfielder Brett Gardner agreed to a one-year deal to remain with the Yankees next season, the club announced Wednesday.
New York declined a $12.5 million club option on Gardner's previous contract, which was a four-year, $52 million deal he signed in 2015 and included a $2 million buyout.
Gardner's new deal is worth $7.5 million, according to MLB.com's Mark Feinsand.
Gardner, 35, has spent all 11 years of his career with the Yankees and is currently the longest-tenured player on the roster. He was drafted by New York in the third round of the 2005 draft and made his Major League debut in 2008.
Last season, Gardner batted .236 with 12 home runs, 45 RBIs and 16 stolen bases through 140 games. The former Gold Glover made the most appearances of any Yankee player in left field (107) during the regular season and also manned center field (34).