German agreed to a one-year, $1.75 million contract with the Yankees on Tuesday to avoid arbitration, Mark Feinsand of MLB.com reports.

German ended up starting in 18 of 22 appearances for New York last season, and he posted a 4.58 ERA, 1.18 WHIP and 98:27 K:BB across 98.1 innings. He'll be in the mix for a rotation spot again during spring training.