NEW YORK - Andy Pettitte needed little time to decide that he wanted to stay on.

The arm felt strong. His family was on board for at least one more year and he felt there was a real chance of adding another World Series title to his collection. With nothing to hold him back, the lefty agreed to a one-year deal with the Yankees worth $12 million on Wednesday, putting baseball's biggest postseason winner back in pinstripes.

"I think we're good enough to go all the way, I really do," Pettitte said on a conference call. "I'm at the point where, if I didn't feel like we had a chance to win it deep down, I wouldn't do this."

The five-time World Series champion turns 41 in June. He retired after the 2010 season to spend more time at home but then decided to come back this year - while working as an instructor during spring training - and signed a contract guaranteeing him $2.5 million.

Pettitte went 5-4 with a 2.87 ERA in 12 starts. He missed almost three months because of a broken lower left leg, sustained when he was hit by a line drive off the bat of Cleveland's Casey Kotchman on June 27.

Pettitte's signing was the Yankees' second move to solidify their rotation in about a week. New York gave Hiroki Kuroda a $15 million, one-year contract to return.

The AL East champions are set to start 2013 with the same rotation as last season, when they won the AL East: CC Sabathia, Kuroda, Pettitte, Phil Hughes and Ivan Nova or David Phelps.

Next up for general manager Brian Cashman could be a contract for 43-year-old closer Mariano Rivera, who is determined to come back after tearing a knee ligament in May while shagging flies during batting practice.

A reliable No. 2 starter throughout his career, Pettitte is 245-142 with the Yankees and Houston in 17 major league seasons. He is the winningest pitcher in postseason history at 19-11.

A member of the "Core Four" along with Derek Jeter, Rivera and Jorge Posada, Pettitte helped the Yankees win World Series titles in 1996, 1998, 1999, 2000 and 2009.