The Yankees made it official today with a press release. The Garbage Man will be back in 2012, most likely as the de facto #5 starter but probably closer to the #3-#4 he was in 2011 if A.J. and Hughes don't rebound.
Freddy's working on a $4 million deal this year, a significant increase from his non-guaranteed deal last last season, with another $1.575 million available in incentives. To make room for Garcia on the 40-man, the Yanks DFA'd Colin Curtis.
As of right now, the 2012 rotation is set. We'll see if that changes over the next month or so.