Free agent Alex Bregman has a new home after agreeing to a three-year, $120 million deal with the Boston Red Sox on Wednesday night, sources told ESPN's Jesse Rogers.

The $40 million annual salary is $10 million-plus more per year than other teams were offering, sources said. The deal includes two opt-outs and deferred money.

Bregman, who was the biggest free agent remaining on the market, is expected to play second base for Boston, sources said, after primarily playing third for the Houston Astros since 2020. He gives the Red Sox another big bat to go with a retooled pitching staff after the team acquired Garrett Crochet via trade and signed Walker Buehler and Aroldis Chapman via free agency earlier this offseason.

Boston manager Alex Cora wanted Bregman badly, having previously coached him in Houston. And with the contract, the Red Sox made a big-money splash after guaranteeing only $52.3 million to free agents this winter, leading to significant frustration from a fan base of a team that hasn't been to the postseason since 2021.

Bregman, who previously played all nine seasons with the Astros, had received interest from several teams, with the Detroit Tigers, Toronto Blue Jays and Chicago Cubs most heavily linked to him, along with Boston and Houston. The Tigers offered him a six-year, $171 million deal, and the Astros were around six years, $156 million, sources said.

Bregman's right-handed bat has a track record of success at Fenway Park. In 21 career games there, he has a .375 batting average with seven home runs and 15 RBIs. His career 1.240 OPS at Fenway is the best in major league history among players with at least 90 plate appearances.

After slumping mightily at the start of the 2024 season, Bregman's bat began to come around in June and the rest of the team followed, as the Astros ultimately jumped the Seattle Mariners to claim their seventh AL West title in eight years.

Bregman, who will turn 31 on March 30, finished the season with a .260 batting average, 26 home runs and 75 RBIs in 145 games. Houston lost back-to-back AL Wild Card Series games to the Tigers.

The two-time All-Star had surgery after the season to remove a bone chip from his right elbow, and agent Scott Boras said Bregman, who has exclusively played third base since 2020, was willing to move to second base if needed.

The Red Sox already have star Rafael Devers at third, so Bregman's expected move to second would allow him to stay there. And while Bregman has logged only 32 innings at second in his major league career, Cora referred to him last month as someone he envisioned as "a Gold Glove second baseman" when the two were together in Houston.

Bregman, who is coming off a five-year, $100 million contract, slashed .275/.376/.488 with 157 home runs and 554 RBIs from 2017 to 2023, compiling 34.2 FanGraphs wins above replacement, eighth most among all position players. Overall, he has a .272 career batting average with 191 home runs and 663 RBIs.

He rejected a one-year, $21.05 million qualifying offer by the Astros on Nov. 19, meaning Houston will receive a compensatory pick after the fourth round of this year's MLB draft. Boston will lose its second-highest pick for signing him and will forfeit $500,000 of international signing bonus pool allocation.

Bregman's ascension directly correlates with the Astros' run of dominance, as his first full season came in 2017, when the franchise won its first championship -- a title later tainted by the sign-stealing scandal that led to the firing of general manager Jeff Luhnow and field manager A.J. Hinch.

The Astros went on to make seven consecutive appearances in the AL Championship Series and won another World Series, during which Bregman established himself as one of the game's best third basemen and became, along with Jose Altuve, one of the team's core leaders.

Bregman was originally drafted by the Red Sox out of high school in 2012, but he opted to go to college at LSU. Houston then selected him second overall in the 2015 draft.

The Red Sox will hold their first full-squad workout Monday in Fort Myers, Florida. They host the Astros in the regular season Aug. 1-3, then visit Houston Aug. 11-13.

News of Bregman's deal with Boston was first reported by The Athletic.

Information from ESPN's Jeff Passan, Buster Olney and Alden Gonzalez was used in this report.