The person spoke Wednesday on condition of anonymity because an agreement had not yet been completed. The deal is pending the 40-year-old Colon passing a physical.
New York was in the market for a starter after ace Matt Harvey had elbow reconstruction surgery, which will sideline him for next season.
General manager Sandy Alderson had said he didn't want to give a long-term deal to a pitcher because New York had several prospects close to being ready.
Colon went 18-6 with a 2.65 ERA for the Oakland Athletics in a season in which he began by completing a 50-game suspension for a positive testosterone test.
More Sports Headlines
Seahawks do what rest of salary-capped NFL say teams can't do Mariners beat Twins 4-3 in 11 innings Snohomish mixed martial artist returns to her first love AquaSox strand 10, fall 3-2 to Volcanoes Seahawks release DT McDaniel , acquire CB Seisay Benches empty as Royals fall to Blue Jays Rays demote Moore, place Souza on DL with fractured hand Charles scores 29 points, Liberty beat Storm 78-62
Our new comment system is not supported in IE 7. Please upgrade your browser here.