Chapman had an opt-out clause in his contract, and his decision was due at midnight ET.
The Yankees gave him a one-year, $18-million extension on top of the remaining two years and $30 million left on his original deal in exchange for him not opting out, sources told Jeff Passan of ESPN. His restructured contract - essentially a three-year, $48-million deal - will keep him in the Bronx through the 2022 season.
New York will once again enter the season with one of the deepest bullpens in the league. The Yankees will also employ Zack Britton, Chad Green, Tommy Kahnle, and Adam Ottavino, while Dellin Betances is a free agent.
Chapman, a five-time All-Star, posted a 2.21 ERA and 1.10 WHIP with 37 saves while allowing only three homers across 57 innings in 2019. The 31-year-old won the Mariano Rivera Award as the American League Reliever of the Year.