Hank Schulman of the San Francisco Chronicle reports that the Giants have reached agreement on a two-year, $40.5 million contract with right-hander Tim Lincecum.
The Giants were hoping to luck Lincecum up to a long-term contract this offseason, but the 27-year-old had a higher asking price than the club could reach. This deal buys out his remaining arbitration years, and allows him to test the open market in 2014. Lincecum registered a 2.74 ERA and 220/86 K/BB ratio in 217 innings last year for San Francisco and should remain a bonafide ace over the course of his new two-year deal.