Jan 06, 2010 3:15 PM EST

The Yankees avoided salary arbitration with right-hander Sergio Mitre on Wednesday, agreeing to terms on a one-year contract.

Mitre will earn a base salary of $850,000, plus possible performance incentives, MLB.com has confirmed. The Yankees did not immediately announce the signing.

Mitre, 28, was 3-3 with a 6.79 ERA in 12 games (nine starts) for the Yankees in 2009. The Yankees had declined his option for $1.25 million in November, with the intent of re-signing him to a lesser deal.

Via MLB.com