Oxon Hill, Md. — Free agent outfielder Matt Holliday and the Yankees have agreed to a $13 million, one-year contract, a person familiar with the negotiations said Sunday, giving New York a veteran designated hitter as the team pivots to youth.

The person spoke on condition of anonymity because the agreement had not yet been announced.

Holliday, who turns 37 next month, fits into the Yankees strategy of signing veterans to short-term deals while pivoting toward a youth movement.

A seven-time All-Star with a .303 career average, Holliday was drafted by Colorado in 1998, traded to Oakland after the 2008 season and then dealt to St. Louis the following July. He hit .246 with 20 homers and 62 RBIs in 110 games this year, missing substantial time after his left thumb was broken when he was hit by a pitch on Aug. 11.

Holliday became a free agent when St. Louis declined his $17 million option.

He figures to be primarily a designated hitter in a lineup where the projected outfield has Jacoby Ellsbury in center, Brett Gardner in left and 24-year-old Aaron Judge in right. Aaron Hicks and Tyler Austin are the backups.

Carlos Beltran, another possibility for the DH spot, agreed Saturday to a $16 million, one-year contract with Houston, a deal that has not yet been announced. Holliday spent 84 games in left field this year, 10 at first and eight at DH.