Gardner, 29, can also earn an additional $150,000 in performance bonuses. Last season, the speedy left fielder earned $2.8 million.
Coming off a 2011 season in which he reached career-high totals in home runs, triples, and stolen bases, Gardner missed all but 16 regular season games last season because of an elbow injury. In his limited time, he hit .323 with two stolen bases and three RBI.
The Yankees have Gardner and center fielder Curtis Granderson penciled in as projected starters next season, but are still lacking a starting right fielder as Nick Swisher has hit the free agent market in pursuit of a multi-year deal.
The Yankees are now left with four unsigned arbitration eligible players, including Phil Hughes, Joba Chamberlain, Boone Logan, and David Robertson.
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