Orioles executive vice president Dan Duquette found another late-inning reliever without making a trade.
The club has reached agreement with right-hander Luis Ayala, and the deal will become official once his physical is completed and the results are known.
It's believed to be a major league deal, which would require a corresponding 40-man roster move.
Ayala, 34, was 2-2 with a 2.09 ERA in 52 appearances with the Yankees last season. He's 31-41 with a 3.47 ERA in seven seasons with six teams. He didn't pitch in the majors in 2010.
Signing Ayala, who made $650,000 last season, could signal an end to the Orioles' interest in reacquiring Koji Uehara. However, I'm not ruling out anything at this point.
Ayala originally sought a two-year deal and reportedly narrowed his choices to the Orioles and Angels.
Fox Sports' Ken Rosenthal just tweeted that the deal might include an option for 2013.
Update: The Sun is reporting that Ayala's deal is worth a guaranteed $925,000, including a $100,000 buyout. His 2013 club option pays $1 million.
Follow Roch Kubatko on Twitter: @MASNRoch