Bronx, NY -- (Sports Network) - The New York Yankees Friday reached a one- year, $16 million agreement with pitcher Andy Pettitte.

According to the team's website, Pettitte still has to pass a physical before the deal, which includes a player option also worth $16 million for 2008, becomes official.

"We have preliminarily agreed to terms with Andy Pettitte on a contract to pitch for the New York Yankees, pending the passing of a physical examination," New York senior vice president and general manager Brian Cashman said.

Pettitte is coming off a three-year stint with Houston, for which he earned a 37-26 record with a 3.38 ERA. He returns to New York, where he spent the first nine seasons of his career winning 149 regular-season games and four World Championships.

Pettitte went 14-13 with a 4.20 ERA last season, with a major-league leading 35 starts. He owns a 186-104 career record with a 3.81 lifetime ERA.