The Orioles and right-hander Kevin Gausman have settled on a one-year, $3.45-million contract to avoid arbitration, according to MLB Network insider Ken Rosenthal.
The deal, which the club has not confirmed, also includes a $50,000 incentive if Gausman makes at least 30 starts and an additional $50,000 if he reaches 33 starts.
Gausman originally filed for $3.55 million; the Orioles countered at $3.15 million.
The 26-year-old went 9-12 with a 3.61 ERA in 30 starts last season. He holds a 23-31 record with a 3.97 ERA in 95 career games (72 starts) in four years with Baltimore.
Cash Kruth is a reporter for MLB.com. Follow him on Twitter at @cashkruth. This story was not subject to the approval of Major League Baseball or its clubs.