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2/9/2013 5:15 P.M. ET

O'Day avoids arbitration, inks two-year deal

The Orioles have avoided arbitration with reliever Darren O'Day, signing the right-hander to a two-year deal on Saturday.

The club hasn't confirmed the pact, which was reported via Twitter by O'Day's representatives, the Beverly Hills Sports Council. The contract will pay the 30-year-old $5.4 million -- $2.2 million in 2013 and $3.2 million in '14 -- and includes a $4.25 million team option with a $400,000 buyout for '15, according to CBSSports.com.

O'Day is coming off a strong season, his first with the Orioles after they selected him off waivers from the Rangers in November 2011. Using a submarine-style delivery, he went 7-1 with a 2.28 ERA, 69 strikeouts and 14 walks in 67 innings. He then added seven scoreless innings in the postseason.

O'Day has also pitched for the Rangers, Mets and Angels across five big league seasons, going 15-6 with a 2.73 ERA and 3.44 strikeouts-to-walks ratio. He has held right-handers to a .211 average, while lefties have hit only .236 against him.

Andrew Simon is a contributor to MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.