Lynne Sladky/Associated Press

The New York Yankees signed reigning American League Rookie of the Year Aaron Judge to a one-year contract Tuesday.

Per the Associated Press, Judge's pre-arbitration deal for 2018 is worth $622,300. The Yankees slugger isn't eligible for arbitration until after the 2019 season after making his MLB debut in August 2016.

Under MLB's collective bargaining agreement, players who have less than three full years of service time have their salary determined by the team.

After a player's third season, assuming no long-term contract has been signed, they become eligible for arbitration and will exchange salary demands with their team. They can either agree to a deal or will have a hearing where an independent arbitrator will rule in favor of the player or team.

As part of Judge's contract with the Yankees, his salary will be reduced to $272,250 if he is sent down to the minors.

The Yankees' 2018 payroll is estimated at $162,490,757, per Spotrac. They are approximately $35 million under MLB's competitive balance tax for this season.

Judge, 25, finished second in AL MVP voting last season after leading the league with 52 home runs and 129 runs scored to help New York reach Game 7 of the American League Championship Series.