The Yankees released Underwood from this minor-league contract Tuesday, Gary Phillips of the New York Daily News reports.
The 30-year-old joined the Yankees on a minor-league deal during the offseason but will now hit the open market. Underwood posted a 3.26 ERA, 1.47 WHIP and 40:24 K:BB across 38.2 innings with Triple-A Scranton/Wilkes-Barre.