The Dodgers on Monday confirmed the transaction, and noted that Demel has a non-roster invitation to spring training.
Demel, 28, was 1-1 with a 1.72 ERA in 35 games with Triple-A Scranton-Wilkes Barre in the Yankees system, with 65 strikeouts and 23 walks in 52⅓ innings.
He didn't pitch in the majors in 2013, but pitched in 72 games in relief for the Diamondbacks from 2010-2012. He put up a 4.95 ERA in his three major league seasons, with 48 strikeouts and 26 walks in 63⅔ innings. Just one of those appearances came in 2012, and after the season he was lost on waivers to the Astros. The Yankees claimed him off waivers at the end of spring training in 2013.
In the last two seasons combined, Demel struck out 140 batters in 118⅔ innings, 28.3% of batters faced.
Here's a nice play made by Demel in 2010, which is really just an excuse to see the brown and mustard Padres uniforms:
Demel was used an option in 2011 and 2012, but was outrighted by the Yankees in Triple-A in 2013. So should Demel make the major league team, he would have a Peter Moylan-esque option remaining should the Dodgers decide to use it.