CLEVELAND -- The Indians' pursuit of free-agent left-hander Mark Mulder didn't come up a dollar short. Their loss to the Cardinals was more a matter of continuity.

Mulder opted to remain with the St. Louis Cardinals, agreeing Wednesday to a two-year contract that reportedly guarantees him $13 million. The contract includes an option for 2009.

It had been speculated the Indians' offer to Mulder included a higher guarantee of about $18 million over two years.

"We're disappointed, but we certainly understand his decision," Indians general manager Mark Shapiro said. "That continuity was important to him. It wasn't about the money."

The 29-year-old Mulder would have been another injury risk for the Indians, but it was one they were willing to take.

Mulder had rotator cuff surgery performed on his throwing shoulder in September, and he might not be ready to join a big-league rotation until the second half of '07. But with starters Jake Westbrook and Paul Byrd approaching free agency, the Indians were thinking ahead and looking for a bargain for '08.

The Indians, Cardinals and Rangers were the finalists for Mulder, a former 21-game winner with the A's. The Cardinals, Mulder's employer the past two seasons, were considered the favorites to land him from the outset.

"You never go into a free-agent pursuit optimistic or pessimistic," said Shapiro, whose club also came up empty-handed in its pursuit of Octavio Dotel and Eric Gagne. "You understand the competitive nature."

Now that the Mulder situation is settled, the Indians basically have what they expect will be the roster that reports to Winter Haven, Fla., for Spring Training next month. They addressed their second-base hole with the trade for Josh Barfield, filled up their bullpen with the signings of Keith Foulke, Joe Borowski, Aaron Fultz and Roberto Hernandez and completed their outfield with the signing of David Dellucci.

All that's left is to take care of contract talks with the four arbitration-eligible players -- right-handers Rafael Betancourt, Jason Davis and Matt Miller and outfielder Jason Michaels. Michaels and Betancourt are locks to be on the big-league club, while Miller and Davis will be fighting Fernando Cabrera for the last two spots in the 'pen.

"It's safe to say, at this point, we're probably not doing much more," Shapiro said.