According to to Nightengale, the deal should be made official by the Yankees on Thursday and will come with a vesting option within the range of $34-35 million.
The Athletic’s Ken Rosenthal first reported that the Yankees were close to an agreement with Happ.
The 36-year-old left-hander split last season between the Yankees and the Toronto Blue Jays, posting a 3.65 ERA and 1.131 WHIP across 31 starts.
Toronto dealt Happ to New York on July 26 in exchange for Brandon Drury and Billy McKinney. Happ made 11 regular-season starts for the Bronx Bombers after the trade, going 7-0 with a 2.69 ERA. He pitched in one post-season contest for the Yankees, throwing two innings in a loss in Game 1 of the ALDS against the Boston Red Sox.