Okajima failed his physical with the team, according to David Waldstein of The New York Times. Team doctors reportedly didn't like the results of an MRI on the reliever's left shoulder.
The failed physical means that Okajima's contract with the Yankees, which was agreed upon in December, has been voided. The 36-year-old was ready for his first season in New York after spending his first five seasons in Boston.
Okajima went 1-0 with a 4.32 ERA in seven big league games last season. He did go 8-1 with a 2.29 ERA in 34 games at Triple-A Pawtucket, though, and the Bronx Bombers were hoping he could regain his All-Star form at the major league level.
The Japanese product was named an All-Star in his first season with the Red Sox in 2007, going 3-2 with a 2.22 ERA in 69 innings over 66 games. He has since regressed each season, leading to his demotion last year.
Okajima is 17-8 with a 3.11 ERA in 261 career appearances.
