© Brad Penner-USA TODAY Sports

The New York Yankees and starting pitcher reached an agreement on a one-year, $12.5 million contract to avoid arbitration, per MLB.com’s Mark Feinsand.

The 31-year-old southpaw was set to enter arbitration before agreeing on the one-year pact with the Yankees. As part of the agreement, he’ll receive nearly $4 million more than he made in 2019. He is set to become a free agent following the upcoming season.

Paxton is coming off a productive season in the middle of New York’s rotation. He posted a 3.82 ERA and 1.28 WHIP across 150.2 innings this past year. If he stays healthy, New York will hope he can build off his strong September when he recorded a 1.05 ERA across 25.2 innings.

He will likely step in as New York’s fourth starter behind Gerrit Cole and Luis Severino in 2020. Paired with Masahiro Tanaka, the Yankees will boast one of MLB’s best rotations and be in great position to compete for the World Series.