Fans at Yankee Stadium will be chanting “Bernie! Bernie!” again next year.

The Yankees announced yesterday that they had officially agreed to a $1.5 million, one-year contract with the popular outfielder, who has been in pinstripes since 1991 and compiled statistics that put his name alongside the team’s greatest players.

“He ranks right there with the Gehrigs and the Berras and the Ruths and the Mantles,” GM Brian Cashman said.

Williams’s playing time will be reduced following the agreement with Johnny Damon, who takes over as the starting center fielder. The shaggy haired Damon passed his physical yesterday and got a haircut, a Yankees official said. The team called a news conference for today to finalize his $52 million, four-year contract.

Williams had 485 at-bats last season, starting 99 games in center and 22 at designated hitter.

“There were no promises made in terms of certain amount of at-bats or where,” Cashman said. “It could materialize as a pinch hitter, a DH, a pinch runner, an everyday outfielder, a defender whether it’s left field, center field. It just remains to be seen.”

Williams is now 37, but despite his diminished skills he remains a favorite of teammates and fans. He joins Yogi Berra, Frank Crosetti, Bill Dickey, Whitey Ford, Lou Gehrig, and Mickey Mantle as the only players to spend 16 seasons with the Yankees. Williams’s contract allows him to earn an additional $1.5 million in performance bonuses – $115,384.62 for each 25 plate appearances from 150 through 450. New York had declined a $15 million option, electing to pay a $3.5 million buyout that concluded an $87.5 million, seven-year contract.

Boras, who also represents Damon, said Williams could have gotten more money elsewhere.

“He took a lot less to come back to the Yankees because he values the Yankees tradition,” Boras said.

Williams signed with the Yankees in 1985, took over as the regular center fielder in 1993, and helped lead the Yankees to four World Series titles.