Wells hit .237 with 11 home runs and 50 RBI in 130 games in his only season with the Yankees.
The Yankees signed Jacoby Ellsbury and Carlos Beltran earlier this offseason, which made Wells expendable.
The Yankees acquired Wells last March after the three-time All-Star spent the previous season with the Los Angeles Angels. The Angels are on the hook for $18.6 million of Wells' contract next season, while the Yankees will pay $2.4 million.
The Yankees have designated Vernon Wells for assignment, as they create roster spots on their 40-man.
— Buster Olney (@Buster_ESPN) January 10, 2014
Thank you @Yankees for the opportunity to be a part of such a storied franchise. #Blessed #NextChapter
— Vernon Wells (@VernonWells10) January 10, 2014