The Twins, however, have not confirmed or announced the deal, as Pelfrey still needs to undergo a physical. The deal is expected to become official next week.
Pelfrey, 29, posted a 5.19 ERA in 29 starts with the Twins last season after joining the club on a one-year deal worth $4 million. The right-hander, who had Tommy John surgery the previous May, struck out 101, walked 53 and gave up 13 homers in 152 2/3 innings.
Pelfrey was better in the second half of the season with a 3.25 ERA in five June starts and a 3.60 ERA in six August starts, but he faltered in September with a 7.45 ERA in four outings.
Advanced metrics such as Fielding Independent Pitching (FIP), which measures what a player's ERA should have looked like based on strikeouts, walks and homers allowed, also painted a rosier picture of Pelfrey. He had a 3.99 FIP, as he still had strong peripheral stats and was hurt by a .337 batting average on balls on play (BABIP). The league average BABIP is roughly .300.
Pitchers also tend to perform better in their second year back from Tommy John surgery, as their command begins to improve.
Manager Ron Gardenhire made it no secret at the Winter Meetings that he wanted Pelfrey back in his rotation. Pelfrey, who is represented by Scott Boras, is now the third free-agent addition to the rotation, joining Ricky Nolasco and Phil Hughes.
"I love the guy," Gardenhire said at the Winter Meetings. "He's good for the clubhouse. He came a long ways last year off his surgery. We like the young man an awful lot and he can help us win baseball games."
Rhett Bollinger is a reporter for MLB.com. Read his blog, Bollinger Beat, and follow him on Twitter @RhettBollinger. This story was not subject to the approval of Major League Baseball or its clubs.