Hughes, Yankees avoid arbitration with one-year deal
Hughes, 26, was 16-13 with a 4.23 ERA in 32 starts with the Yankees last season and was arbitration eligible for the third and final time.
The deal is worth $7.15 million for Hughes, who is entering an important year as he could be a free agent after the season. The right-hander earned $3.2 million last season.
New York has three arbitration eligible players remaining; pitchers Joba Chamberlain, Boone Logan and David Robertson.
The Yankees have not gone to arbitration since 2008, when they defeated pitcher Chien-Ming Wang in a hearing.