Dan Naulty, a righty reliever who wasn’t likely to be tendered a contract on Dec. 20, was designated for assignment by the Yankees yesterday in order to make room on the 40-man roster for lefty reliever Allen Watson who signed a two-year, $3 million contract Monday.

Naulty, 30, next month, would have been eligible for salary arbitration. Acquired from the Twins in November of 1998 for minor leaguer Allen Butler, Naulty made the Yankees out of spring training, was optioned to Columbus (Triple-A) on Aug. 10, and recalled on Sept. 1. In 33 games, Naulty was 1-0 with a 4.38 ERA.

Chuck Knoblauch and Paul O’Neill will be at Yankee Stadium this morning to meet ticket buyers. Windows open at 10 a.m.