Banuelos' contract was selected by the Yankees on Thursday.
Banuelos joined the Yankees as a non-roster invitee this spring, but he began the season at Triple-A Scranton/Wilkes-Barre and posted a 2.35 ERA and 1.13 WHIP in 30.2 innings over seven appearances (five starts). He should serve mainly as a low-leverage reliever for the major-league club.