Walker agreed to a contract with the Yankees on Monday, Jeff Passan of Yahoo Sports reports.
Walker, 32, is a nine-year veteran who last played for the Milwaukee Brewers after being traded from the crosstown New York Mets in August.
The Yankees had room for one more infielder.
This is a good deal for the Yankees as it allows Torres to further develop in Triple A and gives them an extra year to control his destiny.
One of the dozens of free agents still waiting to be signed after a slow (which is putting it mildly) offseason, the Walker deal rescues another veteran from the recently closed free-agent spring training camp.
Apple Acquires Texture, a Digital Magazine Subscription Service
We're excited Texture will join Apple, along with an impressive catalog of magazines from numerous world's leading publishers. Texture is the "Netflix for magazines", bringing subscribers digital access to more than 200 of the world's top publications.
The injury issues followed him into 2017 as he missed six weeks spanning from June to July.
Ronald Torreyes, 25, was penciled in to start at second base this season, but like third base, the Yankees opted to acquire established help.
Walker likely would start at second base and Brandon Drury, acquired from Arizona last month, would play third. He's a switch hitter who put together a combined.265/.365/.439 slash line with 14 home runs and 49 RBI between the two clubs.
Walker now becomes a late entrant in the Yankees' second-base competition.
Regardless, Walker could have a highly-productive stay in the Bronx.