ST. PETERSBURG, Fla. -- Right-hander Drew Rasmussen and the Tampa Bay Rays avoided salary arbitration, agreeing to an $8.5 million, two-year contract.

Rasmussen's agency, the Beverly Hills Sports Council, announced the agreement Tuesday and said it included an option that had the potential to make the deal worth $28 million over three seasons.

A 29-year-old right-hander, Rasmussen had been set to exchange proposed arbitration salaries with the Rays on Thursday.

He had elbow surgery for the third time on July 24, 2023, when Texas Rangers team physician Dr. Keith Meister performed an internal brace procedure. Rasmussen returned to the Rays on Aug. 7 and had a 2.82 ERA and 0-2 record in four starts and 12 relief appearances. He struck out 35 and walked six in 28 innings, averaging 97.4 mph with his four-seam fastball.

Rasmussen had Tommy John surgery in March 2016 and August 2017. He is 20-12 with a 2.95 ERA in 50 starts and 44 relief appearances over five big league seasons with Milwaukee (2020-21) and the Rays (2021-24).

If the option is not exercised, Rasmussen would be eligible for free agency after the 2026 season.

Five Rays remain eligible for arbitration: right-handers Shane Baz and Zack Littell, left-hander Garrett Cleavinger, catcher Ben Rortvedt and shortstop Taylor Walls.