News of Wednesday’s agreement was first reported by MLB.com.
He is 82-57 with a 3.57 ERA in a seven-year big league career.
Lynn, who spent the first six seasons of his career with the St. Louis Cardinals, was an All-Star in 2012, going 11-4 with a 3.41 ERA in 17 starts before the break.
After going 11-8 with a 3.43 ERA in 33 starts for the Cardinals in 2017, he signed with the Twins in March 2018 on a one-year, $12 million deal.
Lynn joined the Yankees at the trade deadline and became their spot starter and long reliever in place of Adam Warren, who was dealt to the Seattle Mariners for $1.25 million in international signing bonus pool allotment.