Right-hander Jonathan Loaisiga and the New York Yankees have agreed on a one-year contract with a team option for 2026, a source told ESPN on Wednesday.

The deal is pending a physical for Loaisiga, who has been hampered by elbow and shoulder injuries in recent years. He has appeared in 163 games over the past seven seasons with the Yankees.

In 2022, Loaisiga missed nearly two months because of shoulder inflammation. In 2023, arthroscopic surgery to remove a bone spur in his right elbow limited him to 17 appearances. Last season, he appeared in three games in 2024 before undergoing season-ending elbow surgery in April. He is expected to be cleared to pitch in late April.

When healthy, however, Loaisiga's ceiling is high. He boasts electric stuff, highlighted by a 98 mph sinker, which made him an appealing free agent option for several clubs, including the New York Mets, San Diego Padres, Texas Rangers and Toronto Blue Jays.

Loaisiga enjoyed his best season in 2021, when he posted a 2.17 ERA in 57 appearances across 70⅔ innings. He returns to a Yankees bullpen that lost All-Star Clay Holmes to the Mets last week and could also lose Tommy Kahnle and Tim Hill in free agency this winter.

Loaisiga is the second player to agree to a deal with the Yankees since Juan Soto chose to sign with the Mets. He joins two-time All-Star left-hander Max Fried, who reached an agreement on an eight-year, $218 million contract Tuesday.

The Yankees also announced Wednesday they have traded catcher Carlos Narvaez to the Boston Red Sox for minor league right-hander Elmer Rodriguez-Cruz and international signing bonus pool money.