Right-hander Luis Severino and the Athletics are in agreement on a three-year, $67 million free agent contract that is the largest guarantee in the franchise's history, sources told ESPN on Thursday.

Coming off a bounce-back year in which he threw 182 innings with a 3.91 ERA for the New York Mets, Severino landed a deal that exceeded industry expectations -- particularly considering he was saddled with a qualifying offer, which often dampens a player's market.

Free agents have been loath to sign with the A's, who will play in a minor league stadium in Sacramento for the next three seasons before a planned move to Las Vegas. By stretching themselves financially -- their previous high deal was a six-year, $66 million extension for Eric Chavez in 2004, and their biggest free agent outlay was three years and $30 million for Billy Butler -- the A's convinced Severino to anchor their rotation.

He can opt out after the second year of the contract, sources told ESPN.

Severino, 30, was once considered one of the best young pitchers in baseball, posting back-to-back All-Star seasons for the New York Yankees in 2017 and 2018. He missed most of 2019 with a lat strain and all of 2020 and most of 2021 after undergoing Tommy John surgery. He returned in 2022 but struggled throughout 2023, leading to a one-year, $13 million prove-it deal with the Mets.

With the fourth-best fastball average among qualified starters and a vicious slider, Severino showed there was plenty left in his arm. He struck out 161 batters, walked 60 and allowed 23 home runs in helping the Mets reach the National League Championship Series.

Severino rejected the one-year, $21.05 million qualifying offer, hopeful that the price of pitching would prompt teams to look past the draft-pick penalties that accompany signing a player tagged with the offer. The A's, whose young position-playing core helped them improve from 50-112 to 69-93 this year, had cast a wide net among free agent pitchers, looking to fill out their rotation with a bounty of cash as they increase their payroll into the $100 million range.

In signing Severino, the A's will give up their third-highest pick in the 2025 draft. Because the Mets exceeded the competitive balance tax threshold last year, they will receive a compensation pick after the fourth round, worth a little more than $500,000 in draft bonus pool money.

The $67 million guarantee is in line with Yusei Kikuchi's three-year, $63 million contract with the Los Angeles Angels and continues the strong market for free agent starters this winter. The deal brings Severino's career earnings to more than $130 million, and he will reach free agency again at 33 years old, when he could receive another long-term deal.