Pettitte will earn $12 million next season, a large pay raise from last season's $2.5 million salary. The 40 year-old starter will also have a chance to earn an additional $2.5 million in awards bonuses.
In 12 starts, Pettitte was 5-4 with a 2.87 ERA last season. He came out of retirement late in spring training to rejoin the Yankees, but did not start pitching in the Majors until May.
Pettitte also missed time late in the year with a fractured ankle, but returned in September and made two postseason starts, posting a 3.29 ERA.
After resigning Pettitte and Hiroki Kuroda, New York's entire rotation from the 2012 season will be returning for 2013.
Now that Pettitte's deal has been finalized, closer Mariano Rivera is expected to sign in the near future.
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