Bastardo was 3-2 with a 2.32 ERA and two saves in 48 relief appearances last year before he was suspended 50 games by Major League Baseball in the Biogenesis drug case.
Bastardo had asked for $2.5 million in arbitration, while the Phillies offered $1,675,000. Outfielder Ben Revere is Philadelphia's only remaining arbitration player.
The 28-year-old Bastardo is 15-11 with a 3.65 ERA and 11 saves in 208 career games, including five starts.
In other moves Tuesday, the Phillies signed former All-Star outfielder Bobby Abreu and right-hander Chad Gaudin to minor league contracts with invitations to spring training.
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- Philadelphia Phillies
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- Major League Baseball