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Neil Walker signing with New York Yankees

The New York Yankees have agreed to a deal with veteran second baseman Neil Walker, a source confirmed to ESPN.

The agreement, which was first reported Monday by Yahoo! Sports, is pending a physical. The sides agreed to a one-year major league contract worth about $5 million, as first reported by FanRag Sports and confirmed by ESPN.

An agreement with Walker at that price would raise the Yankees’ projected luxury tax payroll to approximately $182 million, about $15 million below the luxury tax threshold.

The move could signal that highly touted prospect Gleyber Torres, who has been competing for the Yankees’ starting second-base job, will start the season in the minors.

Torres, who recently was rated as baseball’s No. 5 overall prospect by ESPN’s Keith Law, is hitting 3-for-23 this spring. He has been competing with Tyler Wade and Ronald Torreyes for the open spot at second base.

Walker, 32, batted .265 with 14 homers and 49 RBIs in 111 games combined with the Milwaukee Brewers and New York Mets last season.

He is among the victims of a historically slow free-agent market and will take a huge cut from the $17.2 million he earned last season, when he accepted a qualifying offer from the Mets.

A Silver Slugger winner at second base in 2014, Walker is a career .272 hitter with 130 homers in parts of nine seasons with the Mets, Brewers and Pirates.

He had been working out at the camp for free agents in Bradenton, Florida, organized by the players’ association.

The Associated Press contributed to this report.

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