Banuelos has not pitched since May, but the Yankees didn't think the injury would require surgery. In August, he was officially shut down for the remainder of the season with a bone bruise in his throwing elbow, which eventually turned out to be more severe. The procedure will be done on Thursday by Dr. James Andrews.
In six starts this season, the 21 year-old lefty was 0-2 with a 4.50 ERA at Triple-A Scranton/Wilkes-Barre. However, he was New York's top pitching prospect and ranked as the 29th best prospect in Major League Baseball by Baseball America.
The Yankees signed Banuelos as an international free agent in 2008.
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