One day after GM Brian Cashman said he strongly believed the Yankees and pitcher Shawn Chacon were headed for an arbitration hearing Monday in St. Petersburg, the sides reached a one-year deal yesterday for $3.6 million.

Chacon, who thrived as a Yankee after escaping Coors Field in late July, posted a 7-3 record with a 2.85 ERA in 14 games (12 starts). He made one start in the ALDS, hurling 61/3 innings against the Angels in which the right-hander gave up two runs in a 3-2 Game 4 win that evened the best-of-five series at 2-2.

Unable to reach an agreement on a one-year deal, 28-year-old Chacon filed an arbitration request for $4.135 million and the Yankees countered with $3.1 million. The $3.6 million represents a $1.25 million raise for Chacon, who was 1-7 with a 4.09 ERA in 13 games (12 starts) for the Rockies. He also can earn $100,000 in performance bonuses.

Thursday, Cashman said he planned on being in St. Pete on Monday for a hearing.

“Cash and I have been talking quite a bit for the past four or five days,” agent Dan Horwits said. “I don’t know what changed but we were able to come to a meeting of the minds.”

Chacon isn’t a lock to be one of the Yankees’ five starters in April. Most likely he will battle Jaret Wright for the fifth spot.