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NEW YORK (AP) -- Left-hander Pedro Feliciano is returning to the New York Mets, who also settled their salary arbitration case with first baseman Ike Davis.

The Mets said Monday that Feliciano had agreed to a minor league contract after two injury-plagued seasons across town with the Yankees. The 36-year-old never pitched in a game for the Yankees, spending two years on the disabled list because of a torn capsule in his left shoulder after signing an $8 million contract.

Feliciano had surgery Sept. 8, 2011, and made 10 injury rehabilitation appearances in the minors last year. He has a 1.23 ERA in seven games with Leones de Ponce of the Puerto Rican Winter League.

If added to the 40-man roster, Feliciano would get a $1 million, one-year contract.

Eligible for arbitration for the first time, Davis gets $3,125,000, six times the $506,690 he earned last year when he hit .227 with 32 homers and 90 RBIs. He had asked for $3.7 million when players and teams swapped figures last week and had been offered $2,825,000.

The Mets announced the agreement Saturday.

Second baseman Daniel Murphy is the only Mets player remaining in arbitration. He asked for a raise from $512,196 to $3.4 million. The team offered $2.55 million.

Without an agreement, a hearing would be held next month.