O’Day denied rumors on Sunday that the deal was complete, but on Monday, it was reportedly finalized, pending a physical.
The 33-year-old has spent each of the last four seasons in Baltimore after coming over from the Texas Rangers. He was named to his first All Star team in 2015, going 6–2 with a career-best 1.52 ERA and 82 strikeouts over 65 1/3 innings.
With the signing, the Orioles’ projected payroll for the 2016 season will eclipse $100 million. In addition to the potential signing of O’Day, Baltimore has committed $15.8 million to Matt Wieters and nearly $9 million to Mark Trumbo so far this off-season.