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The Reds also received left-handed pitcher Reiver Sanmartin in the deal, while sending minor league second baseman Shed Long and a 2019 Competitive Balance A draft pick to the Yankees in the deal. The Yankees then dealt Long to the Seattle Mariners for center field prospect Jeff Stowers.
Gray, 29, was 11-9 with a 4.90 ERA last season in 23 starts. In 30 appearances, the right-hander struck out 123 and walked 57 in 130 1/3 innings.
Gray is the third new starter acquired by the Reds in the offseason. They also picked up right-hander Tanner Roark from the Nationals and left-hander Alex Wood from the Dodgers in offseason trades.
New pitching coach Derek Johnson was Gray’s pitching coach 2009 to 2011 while they were both at Vanderbilt University.
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Sanmartin, 22, is from Colombia. He’s 19-11 with a 2.68 ERA in 33 starts and 12 relief appearances in the minor leagues. He signed with the Texas Rangers as a non-drafted free agent in 2015. He spent most of last season in Single-A but made one start at Double-A.
Long was the seventh-ranked prospect in the Reds system. Last season at Double-A Pensacola he hit .262 with 12 home runs and 56 RBIs. He spent the 2015 season and part of 2016 with the Dayton Dragons.