The Reds signed Vargas to a minor-league contract Tuesday.
Vargas was cut loose by the Yankees last week after slashing just .226/.291/.359 with seven home runs and 20 stolen bases in 89 games between the High-A and Double-A levels. He's still just 23 and received a $2.5 million bonus as an international signee back in 2018, so the Reds felt Vargas was worth adding to the organization.