The Texas Rangers and Joc Pederson have agreed to a two-year, $37 million contract, sources told ESPN's Buster Olney.

The deal, which is pending a physical, has an opt-out after the first year, sources told Olney.

The Athletic first reported Monday that the Rangers and Pederson were in agreement on a deal.

Pederson, 32, spent last season exclusively as a designated hitter with the Arizona Diamondbacks but became a free agent last month when he declined his $14 million mutual option. He batted .275 with 23 home runs and 64 RBIs in 2024, his only season with the Diamondbacks after signing a $9.5 million deal last offseason.

The left-handed Pederson has played sparingly against left-handed pitching in recent seasons but has been a productive hitter against righties. He batted .281 with a .923 OPS, 22 homers and 60 RBIs in 335 at-bats against right-handers last season.

Pederson joins a crowded Rangers outfield that includes Adolis Garcia, Wyatt Langford, Evan Carter and Leody Taveras.

Pederson has 209 home runs over his 11-year career with the Dodgers, Cubs, Braves, Giants and Diamondbacks. He was an All-Star with the Dodgers in 2015 and the Giants in 2022. He won World Series titles with Los Angeles in 2020 and Atlanta in 2021.