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The Pirates will pay between $13-14 million of the $33 million remaining on Burnett's contract, the Daily News reported Friday.
The Yankees signed Burnett after the 2008 season, around the same time they also landed CC Sabathia.
"A.J. Burnett is a solid veteran starting pitcher with an above average pitch repertoire and potential to provide us with significant quality innings from our starting rotation," Pirates general manager Neal Huntington said.
Moreno, 24, went 2-4 with five saves and a 3.63 ERA in 41 games between Class- A and Double-A ball last season. Cayones, 20, hit .228 with 12 RBI in 38 total games with State College and the GCL Pirates in 2011.
Other candidates that were reportedly in the mix were former Yankees Johnny Damon and Hideki Matsui.
The Yankees were able to free up some money to add a bat when they finalized a trade that sent pitcher A.J. Burnett to Pittsburgh.
In 1,817 games over 16 seasons with Seattle, Kansas City and Philadelphia, Ibanez has 252 homers, 1,054 runs batted in and a .280 batting average. He was an All-Star for the first and only time with the Phillies in 2009.
The Brewers also signed pitcher Mark Rogers and catcher Martin Maldonado.
Ramirez played just five games with Tampa Bay last April and suddenly announced his retirement after a second violation of the league's Joint Drug Prevention and Treatment Program. The penalty would have included a 100-game suspension, but he instead chose to hang up his cleats.
In December, Ramirez applied for reinstatement. The Office of the Commissioner and the Players Association then decided that Ramirez must first serve a 50- game suspension.
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