The San Diego Padres and right-hander Seth Lugo are finalizing a two-year contract, a source confirmed to ESPN's Jeff Passan on Monday.
The deal is worth about $15 million, with an opt-out after 2023, according to The Athletic.
Lugo, 33, pitched primarily out of the New York Mets' bullpen over the past seven years but had been drawing interest as a potential starting pitcher on the free agent market and might fit into the Padres' rotation next season.
The Padres have only three solidified spots in their rotation at the moment, with Joe Musgrove, Yu Darvish and Blake Snell.