SAN ANTONIO — The New York Yankees did not provide their ace Gerrit Cole with a contract extension by Monday’s deadline. However, Cole chose to remain with the Yankees rather than test free agency and will stay for at least four more years.

The team had until 5 p.m. Monday to offer Cole a one-year extension worth $36 million to cancel his opt-out clause. Since they opted not to do this, Cole decided to stay and will receive the remaining four years and $144 million from his initial nine-year, $324 million deal.

Both the Yankees and Cole will continue discussions about a new contract, without a fixed deadline looming over them now.

On Saturday, Cole activated his opt-out option, enabling the Yankees to save $144 million if they chose to part ways. However, the Yankees recognized that finding a replacement on the free-agent market would be challenging. They ultimately concluded that Cole is a superior option compared to other free agents like Corbin Burnes, Blake Snell, and Max Fried. Moreover, they weren’t prepared to head into the 2025 season with a starting rotation that included Carlos Rodon, Nestor Cortes, Clarke Schmidt, Luis Gil, and Marcus Stroman.

Cole, 34, has performed as the Yankees expected during the initial five years of his contract, boasting a record of 59-28 with a 3.12 ERA. However, following an injury that limited him to just 19 starts last season due to nerve issues in his elbow, the Yankees hesitated to offer him another year. If they had proceeded with the additional year, Cole’s contract would have extended to a 10-year, $360 million agreement—an amount that would set the record for the largest deal ever given to a pitcher.

As of now, both Cole and the Yankees are aware that talks regarding a potential extension will carry on, with the Yankees aiming to reduce Cole’s average salary for luxury tax considerations.