A baseball source confirmed the new pact for the 43-year-old Long, whose contract expired on Sunday along with the Yankees' other coaches. The Yankees have not officially announced the move.
Yankees general manager Brian Cashman said last week that a new deal was likely for Long, who just completed his fourth season as New York's hitting coach. The agreement was first reported Monday by the New York Post.
"I think he'd like to stay and we'd like to keep him," Cashman said. "I think he's exceptional at what he does, so that creates a great climate for getting something done, but it doesn't guarantee anything."
With Long offering instruction, the 2010 Yankees led the Majors with 859 runs scored and a .350 on-base percentage.
They also ranked second in walks (662), third in homers (201) and eighth in batting average (.267), and several players -- including Alex Rodriguez, Mark Teixeira and Curtis Granderson -- have spoken highly of his methods.
"I think he knows swings. I think he knows the proper mechanics of a hitter. He knows how to communicate," Yankees manager Joe Girardi said. "He knows how to teach in a lot of different ways. K-Long is also very good at seeing something in a game and making a minor adjustment with a player."