Schmidt's contract was selected by the Yankees prior to Game 2 against the Orioles on Friday, Marly Rivera of ESPN.com reports.
Schmidt was on the taxi squad for the Yankees' weekend series, and he'll join the 40-man roster for Friday's nightcap. The 24-year-old logged a 2.37 ERA and 0.79 WHIP over 19 innings during three starts at the Double-A level last season and will now be available to make his major-league debut.