Right-handed pitcher Jonathan Loáisiga has signed a one-year contract with the New York Yankees, which guarantees him $5 million as he returns from Tommy John surgery. He could earn up to $10.5 million over the next two seasons.

Loáisiga’s deal includes a $500,000 signing bonus and a $4.5 million salary for the upcoming season. The Yankees also have a $5 million team option for 2026, with no buyout. He could earn an additional $500,000 in performance bonuses in 2026: $100,000 for pitching 50 innings and then $100,000 for every additional five innings up to 70.

Pitching coach Matt Blake mentioned last week that the 30-year-old Loáisiga could return to action in late April or May after undergoing Tommy John surgery on May 1.

“I imagine him being one of the high-leverage guys,” Blake said. “Obviously, we got to take some time to get him right, make sure we don’t rush him into competition.”

Loáisiga had a $2.5 million salary in 2023 during his final season of arbitration eligibility, after which he became a free agent.

He made three relief appearances in the first week of the season but was placed on the injured list due to a strained right flexor muscle. He then had Tommy John surgery performed by the team’s physician, Dr. Christopher Ahmad.

In 2023, Loáisiga was limited to 17 games because of right elbow inflammation, which kept him out from April 5 to August 8.

For his career, Loáisiga has a record of 19-11 with a 3.44 ERA across 11 starts and 152 relief appearances over seven seasons. He has struck out 207 batters and walked 72 in 219 2/3 innings. In 2023, his sinker averaged 97.8 mph.