OXON HILL, Md. — Free agent outfielder Matt Holliday and the Yankees have agreed to a $13 million, one-year contract, a person familiar with the negotiations said Sunday, giving New York a veteran designated hitter as the team pivots to youth.

Holliday, who turns 37 next month, is a seven-time All-Star with a .303 career average, He hit .246 with 20 homers and 62 RBIs in 110 games this year, missing substantial time with a broken thumb.