According to reports on Twitter from various writers including Buster Olney and Ken Davidoff, Andy Pettitte and the Yankees have agreed to a one-year $12M deal plus award bonuses for 2013.
Pettitte came back to pitch in 2012 after retiring prior to the 2011 season. Pettitte posted a 5-4 with a 2.87 in an abbreviated season which was interrupted by a broken ankle suffered at the end of June. He was able to return to the rotation in September and pitch in the playoffs.
Updated: In order to make room for Pettitte on the 40-man, the Yankees designated Eli Whiteside for assignment.