NEW YORK — Left-hander Damaso Marte and the New York Yankees agreed Wednesday to a $12 million, three-year contract that includes a club option for 2012.

New York last week declined a $6 million option on the 33-year-old reliever, choosing to pay a $250,000 buyout.

Marte was acquired with outfielder Xavier Nady from Pittsburgh on July 26 for pitchers Ross Ohlendorf, Jeff Karstens and Daniel McCutchen and outfielder Jose Tabata. Marte went 1-3 with a 5.40 ERA in 25 games with the Yankees and 5-3 with a 4.02 ERA overall.