Right-hander Yu Darvish and the San Diego Padres are in agreement on a six-year, $108 million contract extension, sources told ESPN's Jeff Passan on Thursday.
The deal, which contains a full no-trade provision, starts this season and runs through 2028, when Darvish, 36, will be 42 years old.
The average annual value of the deal is $18 million, which is $3 million less than he previously earned annually. The structure helps the Padres, who have the third-highest payroll in baseball, against the luxury tax.
Darvish was set to be a free agent after this season.
This will be the third six-year deal of his career -- first with the Texas Rangers, then with the Chicago Cubs and now with the Padres.
Darvish led the Padres in wins (16) and strikeouts (197) last season, his second with the Padres after being acquired in a 2020 trade with the Cubs. Overall, he finished 16-8 with a 3.10 ERA. He also was 2-1 in four postseason starts during the Padres' run to the NL Championship Series.
The five-time All-Star is 95-75 with a 3.50 ERA in 10 major league seasons. He has finished as the Cy Young runner-up two times (2013 and 2020).
The deal is the latest by the free-spending Padres. Darvish heads a rotation that also includes hometown product Joe Musgrove, who signed a $100 million, five-year deal in July. They signed shortstop Xander Bogaerts to a $280 million, 11-year deal in December even though Fernando Tatis Jr. will be eligible to return April 20 from an 80-game suspension after testing positive for a performance-enhancing drug. Tatis will move to the outfield.
There could be more big spending ahead for the Padres, who are still seeking their first World Series championship. All-Star third baseman Manny Machado can opt out of his $300 million, 10-year deal after the 2023 season and the Padres would like to have him finish his career in San Diego. Machado finished second in balloting for NL MVP last year.
The Associated Press contributed to this report.