Luke Gregerson's agent says the pitcher has agreed to a $3.2 million, one-year contract with the San Diego Padres.
Tom O'Connell announced the deal Monday on his Twitter account.
Gregerson was 2-0 with a 2.39 ERA in 77 relief appearances last season, striking out 72 in 71 1-3 innings. He made $1.55 million.
The 28-year-old right-hander had asked for $3.75 million in arbitration and had been offered $2,875,000.
Two Padres remain in arbitration: third baseman Chase Headley and left-hander Clayton Richard. Hearings before three-person panels are scheduled for next month in Phoenix.