The left-hander will receive an $11 million salary next year and $13 million in each of the final two seasons of the deal, which was completed Friday. The signing bonus is payable by Dec. 31.
Liriano would get a $325,000 bonus for winning the Cy Young Award, $150,000 for finishing second and $100,000 for third. He also would get a $50,000 bonus for making the All-Star team and $25,000 each for League Championship Series MVP and World Series MVP. He also would get $25,000 for Division Series MVP - an award that doesn't yet exist.
The 31-year-old went 23-18 with a 3.20 ERA for Pittsburgh in 2013 and 2014, helping the franchise reach consecutive playoff berths for the first time in over 20 years. He figures to pitch at the top end of a rotation that includes Gerrit Cole and A.J. Burnett.