Phelps missed the 2018 season because of Tommy John surgery after injuring his elbow in spring training. He is 32-34 with six saves and a 3.86 ERA in seven seasons with the New York Yankees, Miami, Seattle, Toronto and the Cubs.
Milwaukee designated right-hander Deolis Guerra for assignment. The 30-year-old Guerra pitched in one game for Milwaukee last season, and previously played for the Pittsburgh and the Angels.
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