Lindsey Adler of The Athletic reported the update Thursday on Severino, who's been sidelined with shoulder and lat injuries.
The 25-year-old right-hander has pitched at an ace level for the Yanks over the past two seasons. He posted a 2.98 ERA and 1.04 WHIP with 230 strikeouts in 193.1 innings during his breakout 2017 campaign. He finished with a 3.39 ERA in 32 starts last year.
Severino compiled a 4.70 ERA with 11 punchouts in 7.2 innings across three rehab outings, and he said after Wednesday's appearance with the Double-A Trenton Thunder that he's ready to fight for a spot in the team's playoff rotation.
"We're going straight to the postseason," he told reporters. "We have a great team and we have to compete. We have to compete on a [maximum] level and I have to go there and I think I'll have three outings before the postseason, so I need to get my stuff going quickly to be 100 percent ready to fight in the playoffs."
New York's starting rotation has been its biggest source of concern amid an injury-plagued campaign throughout the entire roster.
James Paxton is the only starter with an ERA below 4.00 in 2019. Masahiro Tanaka is likely a safe bet to make the postseason rotation despite his 4.53 ERA. That would leave two spots for Domingo German, J.A. Happ, CC Sabathia and Severino.
The latter should be a lock if he shines during his three starts down the stretch. He threw just 64 pitches in his rehab start Wednesday, so how much he can build up his arm strength will be a factor.
A healthy Severino would provide a major boost for the Yankees' World Series hopes. They have the best record in the American League (95-51) by a half-game over the pitching-rich Houston Astros.