Curry reported the deal includes a $17 million club option for a third season.
Rizzo had declined the one-year, $19.65 million qualifying offer, which made him a free agent.
The news comes after the 33-year-old became a free agent when he exercised an opt-out clause in his contract with the Yankees for 2023. He had signed a two-year, $32 million extension after coming over in a trade from the Chicago Cubs during the 2021 campaign.
The three-time All-Star put together a respectable 2022 campaign with the Yankees, which was his first full season with the franchise. He slashed .224/.338/.480 with 32 home runs and 75 RBI in 130 games.
Yankees manager Aaron Boone made it clear that he wanted the club to re-sign Rizzo while speaking on The Michael Kay Show in November (h/t Sports Illustrated's Max Goodman):
"He's been everything we could have hoped for. He's been an amazing person in our clubhouse. An amazing teammate, an amazing leader, very productive on the field. I think very much cut out to play for our team, for the Yankees. I think he handles all that goes with playing here as one of the premium players and leaders so well. So yeah, I would love to have him back, of course."
Before being traded to the Yankees, Rizzo spent 10 seasons with the Cubs, helping them win the World Series in 2016. In addition, he won four Gold Gloves and a Silver Slugger during that tenure.
Had he signed elsewhere, the Yankees would have been scrambling to find a player who could replicate his power at the plate.
Now that Rizzo is staying, the front office can shift its focus to other areas, such as signing Aaron Judge as well as at third base, shortstop and pitching.