The veteran pitcher gets $8 million this year as part of the deal announced Thursday and Toronto has a $10 million option with a $2 million buyout. He can earn an additional $2 million annually in performance bonuses based on innings and would get the full amount at 180.
A 31-year-old left-hander, Garcia went 4-7 with a 4.30 ERA in 18 starts for Atlanta last season, was dealt to Minnesota in July and won his only start for the Twins before getting traded to the Yankees for two pitching prospects a week later.
Garcia took the No. 5 slot in the rotation as the Yankees looked to bolster their starting staff for a playoff run. He went 0-3 with a 4.82 ERA in eight starts with the Yankees last season.
Garcia pitched for the St. Louis Cardinals from 2008 to 2016 and was dealt to the Braves last December. He started twice against Texas in the 2011 World Series, pitching seven shutout innings in Game 2 and allowing two runs over three innings in Game 6. He did not get a decision in either game.
Garcia has a career record of 67-55 with a 3.69 ERA and 852 strikeouts in 185 appearances, and was third in rookie of the year voting in 2010. He missed the 2009 MLB season following Tommy John surgery.