"He wants to play again," said Cashman, who was informed by the reliever of his decision Friday. "I'll work with his agent, Fernando Cuza, on the details of a contract."
After he crumbled to the turf and tore his ACL in Kansas City in early May, Rivera, who turns 43 on Nov. 29, vowed he would return in 2013.
"I'm coming back," an emotional Rivera said in Kansas City a day after the injury. "Put it down. Write it down in big letters. I ain't going down like this."
However, late last week, there were reports Rivera was unsure if he would return next season.
The negotiations for a new contract could be a bit complicated. Rivera made $15 million last season, but even with the front office's utmost respect for him, it is unclear what it will offer him considering he would be returning after a season in which he pitched in only nine games.
In Rivera's place this past season, Rafael Soriano thrived as the Yankees' closer, converting 42-of-46 save chances. Soriano could opt out of the final season of his contract. Soriano's agent, Scott Boras, hinted that Soriano would choose free agency but said a final decision had not been made.
Information from ESPNNewYork.com's Andrew Marchand was used in this report.