From the AP:
New York and the reliever reached a preliminary agreement Tuesday on a $2 million, one-year contract.
"I feel very happy with this contract," Dotel said. "This team has a lot of tradition, and it pleases me to know that they want me to pitch for them."
Dotel could earn $3 million more in performance bonuses based on games. His deal contains an additional $2.5 million in bonuses based on games finished, in case he is traded to another team.
He had 36 saves for Houston and Oakland in 2004 but struggled last season with Oakland, going 1-2 with seven saves and a 3.52 ERA before he went on the disabled list May 20. From April 30 to May 11, he blew four saves in five outings.
Dotel had reconstructive elbow surgery June 6 to repair a torn ligament. He hopes to be pitching by midseason.
"What I do know is that it's going to help me to go back to what I like and that is to be a closer," he said.
With the Yankees, he joins several newcomers in the bullpen: right-hander Kyle Farnsworth and left-handers Ron Villone and Mike Myers. New York has struggled to find middle-inning pitchers in recent years, and setup man Tom Gordon left to become the Philadelphia Phillies' closer.
Several teams had sought Dotel, including the crosstown Mets.