While Penny was due only $9.25 million in 2009 and twice won 16 games for the Dodgers, most recently in 2007, the player and the team were at odds late in the season over the club's refusal to negotiate an extension. Penny started 17 games last season and missed significant time because of a sore shoulder. Late-season tests showed no structural damage in the shoulder.
He left the club in late September, so was absent for its playoff run, further souring his relationship with Dodgers management.
Penny, 30, has a career record of 94-75.
His agent, Brian Peters, said he spoke to Penny on Wednesday morning, shortly after the Dodgers notified the agent of their intentions.