The deal was reached Friday, giving the Twins contracts with five of their six arbitration-eligible players. Left-handed reliever Brian Duensing remains unsigned.
Schafer was claimed off waivers from the Atlanta Braves last August and batted .285 with one home run, five doubles and 15 stolen bases in 41 games with the Twins. He asked for $1.7 million, up from $1.09 million last season, and the Twins countered at $1.4 million in the exchange of figures last week. Schafer, whose natural position is center, likely will be the team's fourth outfielder this year.
Duensing asked for a raise from $2 million to $3.1 million, and The Twins offered $2.4 million.