New York Yankees and Raul Ibanez agreed to a one-year contract for a $1.1 million plus incentives, according to baseball sources who spoke on condition of anonymity Monday.

The Yankees are expected to make Ibanez as the primary designated hitter against right-handed starting pitchers.

Ibanez, 39, has played with Philadelphia as an outfielder in the last three seasons. He hit .256 with 16 homers and 60 RBIs against right-handed pitchers in 2012.

New York decided on him over other free agents like Johnny Damon and Hideki Matsui because Yankees fell Ibanez can give them a little more depth.

The Yankees have traded A.J. Burnett to Pittsburg and expect to receive $5 million in salary relief from Pittsburgh this year. Ibanez can make up to $4 million total with the incentives, the sources said.