Free-agent right-hander Tom Gordon has signed a three-year contract to be the Phillies' closer, FOXSports.com has learned.
The value of the deal is believed to be $18 million.
The Yankees made a late push for Gordon, increasing their offer from two to three years in their bid to retain him as Mariano Rivera's setup man.
The Orioles, Tigers and Indians also were pursuing Gordon.
In addition, the Yankees have been in negotiations with free-agent reliever Kyle Farnsworth, but have yet to close a deal. The Rangers also are pursuing Farnsworth, and it possible that Farnsworth is still considering an offer to return to the Braves. If the Yankees lose him, they will be scrambling to find a set-up man.
Gordon, 38, will replace Billy Wagner, who recently signed a four-year, $43 million deal with the Mets.
The deal is pending a physical, which Gordon will take on Saturday.
Ken Rosenthal is the senior baseball writer for FOXSports.com.