The Yankees signed Velazquez to a minor-league contract Friday that includes an invitation to spring training, Jack Curry of YES Network reports.
Atlanta reassigned Velazquez to minor-league camp Monday.
Velazquez elected to become a free agent Friday.
Atlanta outrighted Velazquez to Triple-A Gwinnett on Wednesday.
Atlanta claimed Velazquez off waivers from the Angels on Tuesday and optioned him to Triple-A Gwinnett.
The Angels optioned Velazquez to Triple-A Salt Lake on Sunday.
Velazquez is out of the lineup for Monday's game against Atlanta, Rhett Bollinger of MLB.com reports.
Velazquez went 3-for-4 with a double and two runs scored in Tuesday's 7-6 victory over Detroit.
Velazquez went 1-for-3 with a solo home run Sunday in a 7-5 victory versus the Pirates.
Velazquez hasn't started a game since prior to the All-Star break, though he's gotten into seven second-half contests as a pinch runner and/or defensive replacement.