Returning from season-ending surgery to repair a meniscus tear in his left knee in late August, the former Mets and Pirates hurler had a 4.50 ERA in six Grapefruit League appearances. Niese permitted three runs and five hits in six innings, walking one and striking out five.
Niese's departure whittles down the group of remaining contenders to crack a Yankees bullpen that counts Aroldis Chapman, Dellin Betances, Tyler Clippard and Tommy Layne among its locks.
Chad Green, Bryan Mitchell, Jordan Montgomery, Luis Severino and Adam Warren have all competed for rotation spots this spring, and some are expected to wind up with bullpen slots if they are not selected as starters.