Pearce had asked for $5.4 million and had been offered $2 million when the sides exchanged proposed salaries two weeks ago, the largest gap among the 74 players who swapped. The settlement Friday was at the midpoint.
Pearce hit .293 for Baltimore last year and set career bests with 21 homers and 49 RBIs.
He is eligible for free agency after this season.
Three Orioles remain in arbitration: closer Zach Britton, right-hander Miguel Gonzalez and outfielder Alejandro de Aza.