Richard, 35, was designated for assignment earlier this month after a season in which he started 27 games and posted a 5.33 ERA. He’ll earn $3 million in 2019, the final year of his contract.
Panas, 25, hit .232/.296/.359 including nine home runs 39 RBI and four stolen bases in 105 games in double-A last season.
To make room for Richard on the 40-man roster, the Blue Jays have designated right-handed pitcher Oliver Drake for assignment.
The Blue Jays recently added Matt Shoemaker to a projected rotation that also includes Marcus Stroman, Aaron Sanchez and Ryan Borucki. While Richard has started for most of his ten-year big-league career, he also has experience in the bullpen, giving Blue Jays manager Charlie Montoyo some flexibility.