The Yankees had signed the 36-year-old former Boston Red Sox reliever to a minor league contract in December and expected him to compete for a spot as a situational lefty out of the bullpen to complement Boone Logan, the only lefty reliever on last year's staff.
Minus Okajima, the Yankees now have only two left-handed relievers other than Logan in camp -- 23-year-old Cesar Cabral, acquired in the Rule 5 draft, and 31-year-old Mike O'Connor, who made nine appearance for the Mets last season before being designated for assignment.
The Yankees did not provide information as to what injury caused Okajima to fail his physical, and general manager Brian Cashman did not immediately return a call seeking comment. The news was first reported in a tweet by WFAN.
Wallace Matthews covers the Yankees for ESPNNewYork.com.