The New York Yankees signed

Raul Ibanez to a one-year deal Tuesday, with baseball sources telling ESPN The Magazine's Buster Olney that the contract is worth $1.1 million plus incentives.

Ibanez can make up to $4 million total with the incentives, the sources said.

The Yankees plan to use Ibanez as a left-handed designated hitter, a source told ESPNNewYork.com's Andrew Marchand last week.