New York's decision left Domingo German as the fifth starter behind Gerrit Cole, Corey Kluber, Jameson Taillon and Jordan Montgomery. Germán missed last season while serving a suspension under Major League Baseball's domestic violence policy.
Luis Severino is expected back in June or July following his rehabilitation from Tommy John surgery.
The 21-year-old Garcia was 0-2 with a 3.86 ERA over 14 innings in five spring training outings. He allowed four runs, seven hits and two walks in three innings against Toronto on Wednesday.
"Obviously we continue to be really excited about Deivi and continue to be really excited about the strides that he's continued to make in his craft," manager Aaron Boone said. "I would say from going back to last spring, to summer camp, to how he finished the year, to where he is now, he continues to develop as a pitcher."
Boone said the Yankees love his confidence and how well he takes instruction, but his motion is slightly off right now.
"I think the message to him that I tied to convey was stay ready," Boone said. "We're going to need you, you're going to be a big part of this, chances are. And make sure you're handling your business down there as putting yourself in line to be the guy we go to because there's probably going to be a time when in the month of April where may go to a sixth starter at some point here or there."
Germán pitched nine scoreless innings over five appearances, allowing five hits, striking out 13 and walking one.
He was 18-4 with a 4.03 ERA for the Yankees when MLB put him on administrative leave in September 2019 while investigating an alleged domestic violence incident involving his girlfriend, with whom he has at least one child.
Germán missed the final nine games of the regular season and all nine of New York's playoff games. On Jan. 2, 2020, he was suspended for 63 games -- he was out for the entire pandemic-shortened 2020 season and playoffs.
INF Derek Dietrich worked out pregame, then asked to be scratched from playing in the exhibition against Baltimore while awaiting New York's decision whether to add him to the major leaguer roster. OF Jay Bruce is in a similar situation. ... In his final tuneup for opening day, Cole allowed two hits in five shutout innings with five strikeouts and no walks in a 4-1 loss to Baltimore.