The Yankees acquired Arias from the Cubs on Wednesday in exchange for cash considerations.
The Cubs designated Arias for assignment Monday, Maddie Lee of the Chicago Sun-Times reports.
Arias was optioned to Double-A Tennessee by the Cubs on Friday, Meghan Montemurro of the Chicago Tribune reports.
The Cubs added Arias to their 40-man roster Tuesday, Andy Martinez of Marquee Sports Network reports.
Arias has a 0.88 ERA, 0.85 WHIP and 45:15 K:BB in 30.2 innings over his last seven starts for Single-A Myrtle Beach.