The Yankees sent Ottavino, German and cash considerations to the Red Sox in exchange for a player to be named later or cash, according to the team. ESPN reported that New York agreed to send the Red Sox $850,000 to cover part of the $8 million owed to Ottavino.
The 35-year-old Ottavino is entering the final season of a three-year, $27 million contract that he signed in January 2019. The Yankees remain responsible for Ottavino's $3 million signing bonus, which is due next January.
"I know it's the Yankees and I understand what that means and it's the most storied rivalry in sports," Red Sox chief baseball officer Chaim Bloom told reporters Monday.
"But if we're not willing to do something that helps us because it also helps them, or worse, if we're worried that it might not go as we expect and it blows up in our faces and we looked at it, well, then, we're just playing scared. And we're not going to play scared."
Monday's deal was only the sixth trade between the Yankees and Red Sox in the divisional era -- since 1969.
"I was a little surprised today when I got the news. But all things considered, Boston's always a place I want to play," Ottavino told reporters Monday. "I feel like I'm going to end up a trivia question now."