That's what Notimex (on Yahoo! Deportes) appears to be reporting. He has been playing for the Monterrey Sultans in the Mexican League. From their official site (translated through Babelfish):

From this date, Erubiel Durazo goes to form part of Yankees of New York, this thanks to narrow relation that exists with this organization binds wholesaler, since they are requiring a left-handed batter and the Club of Baseball Sultanes de Monterrey offers to this opportunity of overcoming to Durazo, facilitating the contract and yielding its rights to the New Yorkers, who will locate it in principle, in AAA.

Durazo, 33, last played in the majors in 2005 when he played in 41 games for the Oakland A's. He's a lifetime .281 hitter with a .381 OBA. In his finest season, 2004, he hit .321 with a .396 OBA, 22 home runs and 88 RBI in 142 games.

Via WasWatching.com via Dan LaTorraca.