The news was first reported Saturday night by ESPN's Jeff Passan.
Seattle is sending the Yankees $8,397,849, leaving NY to pay $8 million of remaining $16,397,849 Encarnacion is guaranteed.
The 36-year-old still is owed over $15 million, but The Athletic's Ken Rosenthal reported both NY and Seattle will split the money.
The 36-year-old Encarnación began the day leading the AL with 21 home runs in his first season with Seattle.
The 36-year-old carries a $20 million base salary this season and NY will hold a $20M club option for 2020 or can exercise a $5 million buyout. The right-hander was originally signed by Seattle's organization in 2016, and played a season for the Dominican Summer League Mariners before being traded to NY in the Nick Rumbelow deal following the 2017 season. The Yankees are 42-27 and are a half game ahead of the Rays in the AL East.
Stanton could return next week after being sidelined by biceps, shoulder and calf injuries, and Judge also is inching closer after he strained his left oblique in April. Both stars are on rehab assignments in Triple-A.
Encarnacion's arrival means more juggling for the Yankees, who will have a roster full of talented players once everyone returns from the injured list. Originally signed by Seattle, he was traded to the Yankees after the 2017 season in a deal for pitcher Nick Rumbelow.
When Brian Cashman addresses the media Monday to discuss the Encarnacion trade and its ramifications, the Yankees general manager surely will praise Frazier - whom he acquired from the Indians in the 2016 Andrew Miller trade - and play down the idea that the outfielder now becomes more expendable.
Then has posted a 0-3 record and 2.70 ERA in 11 starts with the Gulf Coast League Yankees this season in extended spring training. The Mariners have shown a willingness during their recent rebuild to send money back to supplement these contracts in exchange for a better prospect.