The Indians, who traded two players -- Wood and outfielder Austin Kearns -- to the Yankees on Friday and Saturday, respectively, have until Oct. 15 to decide which option they would like to explore. In the meantime, however, they are required to send the Yankees $2,172,131 in cash, with New York set to pay the remaining $1.5 million of the $3,672,131 remaining on Wood's $10.5 million salary this year.
It was a deal that Cleveland assistant general manager Chris Antonetti said "came together relatively quickly."
Antonetti added that various teams were interested in the veteran closer's services, but the Yankees really stepped forward in the final hours.
Wood, who was activated from the 15-day disabled list earlier on Saturday with just 20 innings under his belt this season, didn't think he would be on the move.
"I had the seventh inning and they called and said 'shut [him] down," the 32-year old Wood said. "I figured something was going on.
"I thought I'd get at least three, four or five innings in. They've watched some video and some film of my outings earlier this year and I guess they saw enough."
Wood assumed the closer role for Cleveland after being signed prior to the start of the 2009 season. He experienced two injury-plagued campaigns with the Tribe, pitching a total of only 75 innings. Over the brief period, Wood delivered a 4-7 record with a 4.80 ERA.
Upon exiting the visitors' clubhouse at Rogers Centre, Wood expressed his remorse for being unable to live up to lofty expectations.
"Obviously disappointed in my performance this year and my time here in Cleveland, what we did as a team the last couple of years," he said. "Mostly last year, got off to a rough start. That's part of the game though, that's kind of the way it goes.
"[I] would have liked to hold up my end of the deal better than I did, but in the end -- it is what it is."
Chris Perez, who notched his 11th save of the season on Saturday, will serve as the team's full-time closer.
James Hall is an associate reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.