David Ortiz and the Boston Red Sox reached agreement on Friday night on a two-year deal worth at least $26 million, ESPNBoston.com reported.
If Ortiz satisfies all the incentives, the deal could be worth as much as $30 million, according to the report.
Ortiz, who turns 37 in two weeks, has been saying he wanted to finish his career in Boston, and it appears he may be able to do so.
The Red Sox had made Ortiz a $13.3 million qualifying offer earlier Friday. That was done so the Red Sox could get compensation with draft picks if he were to sign with another team.
But that becomes moot with the sides reaching an agreement.
Ortiz played only 90 games in 2012 because he suffered an Achilles strain on July 16. He hit .318 with 23 home runs and 60 RBIs.