The Reds have not confirmed the agreement.
In accordance with the Collective Bargaining Agreement, each team is allotted a $700,000 base and a bonus pool with four slot values based on the team's record in 2014 for the international signing period, which started Thursday. Cincinnati's overall pool total for this year's signing period is $2,873,000.
The left-handed-hitting, left-handed-throwing outfielder has shown average raw power, but some believe he could have plus power in the future because of his size and strength. He has also shown the ability to hit well in games, in addition to scouting showcases.
Olivo takes big swings, and he has displayed the ability to drive the ball to all fields. He has also shown his speed and the ability to run the bases aggressively in games.
The teenager trained in Boca Chica, Dominican Republic, with Carlos Guzman, the same trainer as Rangers prospect Jairo Beras.
The Reds have also been linked to Miguel Hernandez, a 5-foot-11, 150-pound shortstop from Venezuela.
Jesse Sanchez is a national reporter for MLB.com. Follow him on Twitter @JesseSanchezMLB. This story was not subject to the approval of Major League Baseball or its clubs.