The right-hander agreed to a one-year deal for $16 million to come back and fill one of three holes in the rotation behind CC Sabathia and Ivan Nova.
Kuroda, who turns 39 in February, got off to a strong start last season before fading down the stretch. He finished 11-13 with a 3.31 ERA in 32 starts covering 201 1-3 innings.
The deal, which was officially announced by the Yankees on Saturday, includes bonuses of $250,000 for pitching 190 and 210 innings.
The Yankees have been overhauling their roster after missing the playoffs for only the second time in 19 years.
New York introduced new catcher Brian McCann at a news conference Thursday. The Yankees have a pending $153 million, seven-year agreement with outfielder Jacoby Ellsbury.
When the deals for Ellsbury, Beltran and Kuroda are finalized, the Yankees will have committed about $172 million to 13 players for their 2014 luxury-tax payroll.
That would leave them with approximately $5 million to spend if they intend to stay under the $189 million threshold, which includes all players on the 40-man roster and $11 million to $12 million for benefits.
It appears unlikely New York would remain under the threshold unless Rodriguez is suspended for most of the season, which would relieve the Yankees of much of his $25 million salary.