New York acquired right-handed pitching prospects Albert Abreu and Jorge Guzman in the trade. Houston also will receive cash considerations from the Yankees.
McCann, 32, joined the Yankees in 2014, signing a five-year, $85 million contract as a free agent. He had to waive his no-trade clause.
This past season, McCann batted .242 with 20 homers and 58 RBIs.
The seven-time All-Star became expendable after rookie catcher Gary Sanchez burst onto the scene this year for the Yankees, batting .299 with 20 homers in just 53 games. The Bronx Bombers were also reportedly interested in moving McCann's $17 million salary to help in the bidding war for closer Aroldis Chapman.
The Yankees, however, have agree to pay $5.5 million of McCann's salary each of the next two years, WFAN baseball insider Jon Heyman reported.
According to MLB.com, Abreu was the Astros' No. 7 prospect. The 21-year-old Dominican was 3-8 with a 3.72 ERA with two Class A teams this past season.
Guzman, a 20-year-old also from the Dominican Republic, split time between two teams on the rookie level in 2016, going 3-4 with a 4.05 ERA.
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