Left-hander Andy Pettitte’s three-year, $25.5 million contract is contingent upon him passing a physical examination, which is scheduled to take place next week.

Though the Yankees drew no closer to a seven-year, $17 million per year contract for Derek Jeter because George Steinbrenner hasn’t yet approved it, they did announce an agreement with Jeter’s best friend on the team.

Arbitration-eligible catcher Jorge Posada, promoted to full-time duty with the departure of Joe Girardi, agreed to a one-year, $1.25 million deal.

Pettitte, 27, is 81-46 with a 3.92 ERA in five seasons with the Yankees. He had the worst year of his career in 1999, going 14-11 with a 4.70 ERA. He failed to pitch 200 innings for the first time since pitching 175 innings in his rookie season.

Posada, charged with 17 passed balls last season, took a .210 batting average into the All-Star break but rallied to finish at .245.

The Yankees face potential salary arbitration hearings with relievers Mariano Rivera, Ramiro Mendoza and Jason Grimsley.