Right-hander Clay Holmes and the New York Mets are in agreement on a three-year, $38 million contract with an opt-out after the second year, sources confirmed to ESPN's Jeff Passan.

The Mets plan to turn Holmes, who has spent his big league career as a reliever, into a starter. He has not started a game since his rookie season in 2018.

A middling reliever for the Pittsburgh Pirates for three-plus seasons to start his big league career after seven years in the minors, Holmes took off when the New York Yankees acquired him for two minor leaguers at the 2021 trade deadline. He arrived in the Bronx with a 4.93 ERA but found immediate success in the Yankees' bullpen, posting a 1.61 ERA in 25 games down the stretch. He replaced Aroldis Chapman as the club's closer in 2022, posted a 2.54 ERA with 20 saves and made his first All-Star team.

Holmes, 31, was an All-Star again last season after a dominant start to the year. But he struggled as a closer over the course of the summer, blowing a league-leading 13 saves -- four more than any other reliever -- and was demoted from the role in early September. He finished the regular season with a 3.14 ERA and 30 saves in 67 appearances. He was charged with three runs in 13 postseason games, primarily in a setup or fireman role.

Despite the mishaps, his top-tier stuff, which includes a high-90s sinker and a wipeout slider, and elite ability to induce ground balls -- he produced the second-highest ground ball rate in the majors in 2024 -- made Holmes an attractive option for several contenders in free agency.

The Yankees, meanwhile, decided retaining Holmes wasn't worth the price. They have excelled in unearthing and developing cheap gems for their bullpen in recent years, from Holmes in 2021 to Luke Weaver last season, and have their sights set on spending big in other departments this offseason, with Juan Soto remaining atop their priority list.

The New York Post first reported Holmes' agreement with the Mets.