Pineda, a free agent, is recovering from Tommy John surgery on his right elbow, performed in July. He might not be available for the 2018 season, but he could be ready for spring 2019.
His deal is worth $2 million the first year and $8 million for 2019.
Pineda, 28, made 17 starts before his 2017 season ended, going 8-4 with a 4.39 ERA in 96 1/3 innings. He struck out 92 batters and walked 21.
In five major league seasons, he is 40-41 with a 4.05 ERA in 680 innings pitched.
He made his only All-Star team in 2011, his rookie season with the Seattle Mariners, who traded him to the Yankees in January 2012.