Right-hander Blake Wood and the Cleveland Indians have agreed to a $560,000, one-year contract, a raise of $58,000.
Wood was claimed off waivers from Kansas City on Nov. 2. The 27-year-old had elbow ligament-replacement surgery in May and missed the entire season.
Wood, drafted by the Royals in 2006, spent two seasons in the Kansas City bullpen and appeared in 106 games. He had a 5.07 ERA in 51 appearances as a rookie and a 3.75 ERA in 2011.
Cleveland had until midnight Friday to offer contracts to unsigned players, including eight eligible for arbitration: closer Chris Perez, outfielder Shin-Soo Choo, right-hander Justin Masterson, relievers Tony Sipp and Joe Smith, third baseman Jack Hannahan, catcher Lou Marson and infielder Mike Aviles.
Cleveland has not gone to arbitration since 1991.