NEW YORK — Nick Johnson is returning to the New YOrk Yankees, a move that likely will end Johnny Damon’s time in New York after four seasons.

Johnson reached a preliminary agreement Friday on a $5.5 million, one-year contract, a person familiar with the negotiations said, speaking on condition of anonymity because the agreement is not yet complete.
Johnson must pass a physical for the agreement to be finalized. He can earn about $1 million more in performance bonuses next year, and the deal includes a 2011 mutual option for at least $5.5 million with possible escalators.
Damon, who had a key double steal that helped New York beat Philadelphia in the World Series, became a free agent after completing a $52 million, four-year contract.
While he was popular with teammates and fans, the Yankees were concerned about his age (36). The sides also were far apart on money. Damon at first was seeking a three-year deal worth at least $39 million, while New York was prepared to go no higher than $18 million to $20 million over two seasons.
His agent, Scott Boras, told the Yankees on Thursday that Damon was willing to accept two years.
“The Yankees made us an offer yesterday at 4 o’clock and we responded at 4:30 and they told us that Johnny just didn’t fit in their budget,” Boras said.
Johnson began his career in New York and spent three years with the Yankees before he was traded to Montreal after the 2003 season in the Javier Vazquez deal. The 31-year-old becomes the second significant addition to the Yankees during the offseason following last week’s acquisition of 28-year-old center fielder Curtis Granderson in a trade from Detroit.
New York has been trying to get younger and save money at the same time. World Series MVP Hideki Matsui, the Yankees’ 35-year-old designated hitter, left this week for a $6 million, one-year deal with the Los Angeles Angels.
Johnson, a first baseman, will become replace Matsui as the Yankees’ DH and Melky Cabrera appears likely to take over from Damon in left. Johnson hit a combined .291 for Washington and Florida last season with eight homers, 62 RBIs, 99 walks, a .426 on-base percentage and a .405 slugging percentage. He figures to bat second for the Yankees behind Derek Jeter.
While Johnson has had a high on-base percentage throughout his career, he has been fragile. He has made nine trips to the disabled list for a sprained right wrist (2000), bruised left wrist (2002), broken right hand (2003), strained back (2004), broken cheekbone (2004), bruised right heel (2005), broken right leg (all of 2007), right wrist surgery (2008) and strained right hamstring (last season).