NEW YORK -- The New York Yankees signed left-handed relief pitcher Damaso Marte to a three-year contract on Wednesday.
The move came after the Yankees declined Marte's contract option for 2009, making him a free agent.
Financial terms were not disclosed, but the New York Daily News reported that the deal was worth $12 million.
Marte and outfielder Xavier Nady were acquired from the Pittsburgh Pirates on July 26 for pitchers Ross Ohlendorf and Jeff Karstens and a pair of minor league players.
Marte struggled to adjust after the trade, posting a 1-3 record with a 5.40 ERA in 25 appearances for the Yankees.
But in his final 16 appearances, over 11 innings from August 16 to the end of the season, he allowed just two earned runs.