The club did not disclose contract terms, but a baseball source confirmed that Jackson will make $13.35 million as Arizona buys out his final two years of arbitration eligibility. Jackson was asking for $6.25 million in arbitration, while Arizona countered with an offer of $4.6 million. The hearing had been scheduled for Wednesday.
Jackson joined Arizona in December along with right-hander Ian Kennedy as part of a three-team trade with the Tigers and Yankees. In his lone season with Detroit, Jackson went 13-9 with a 3.62 ERA and appeared in his first All-Star Game.
Since making his Major League debut with the Dodgers in 2003, Jackson has compiled a 38-39 record with a 4.66 ERA in parts of seven seasons.
Jackson enjoyed a breakout season in 2008 as part of the Rays' American League champion squad. He won a career-high 14 games while posting a 4.42 ERA.
The 26-year-old accomplished career highs last season in Detroit with 214 innings pitched and 161 strikeouts. He tossed a scoreless inning in the All-Star Game after taking a 7-4 record and 2.52 ERA into the Midsummer Classic.
The D-backs have now reached deals with all of their arbitration-eligible players. They re-signed shortstop Stephen Drew and right-handed relievers Chad Qualls and Aaron Heilman last month.
Rick Gold is an editorial producer for MLB.com. Steve Gilbert contributed to this report. This story was not subject to the approval of Major League Baseball or its clubs.