The 35-year-old Denorfia would have earned $1 million if he had made the major league roster. He hit just .200 in 25 at-bats, with one home run and five RBIs this spring training.
The Yankees signed Denorfia on March 2, adding a right-handed-hitting option to the outfield. The Yankees assigned Denorfia to minor league camp on Saturday.
Denorfia has a .272 career average, with 41 home runs and 196 RBIs.