The New York Yankees have just signed 25-year-old Japanese hurler Masahiro Tanaka.

Both sides settled to a seven-year, $155 million deal, according to a unidentified source who took part in the talks. As of right now, both parties have not confirmed the report. The deal includes an opt-out clause, in which he could become a free agent if he decides to cancel the rest of the contract after four years.

Tanaka was 24-0 with a 1.27 E.R.A. in Japan for the Rakuten Eagles in 2013.

The Yankees must also pay an extra $20 million to the Eagles as part of the new posting deal between MLB and Nippon Professional Baseball.

According to the NY Times, The Tanaka contract takes the Yankees payroll above the $189 million luxury tax threshold, meaning they will maintain paying 50 percent extra in tax on every dollar over $189 million.

Nevertheless, Yankees managing general partner Hal Steinbrenner, always revealed that luxury tax would not hinder with the goal of putting a championship-caliber squad on the field.

Tanaka joins the other prominent free agents the Yankees have acquired this offseason, former Atlanta Braves catcher Brian McCann, and outfielders Jacoby Ellsbury and Carlos Beltran.

The Yankees have agreed to pay $438 million combined over their contracts to the four star athletes after failing to reach the playoffs in 2013.

There were many teams interested in signing Tanaka beside the Yankees, including the Chicago Cubs, LA Dodgers, Chicago White Sox, and the Arizona Diamondbacks.

The Yankees pitching rotation includes C."‰C. Sabathia, Ivan Nova, Tanaka, and Hiroki Kuroda as the franchise aims to win the 2014 World Series.