Two-time American League MVP Miguel Cabrera has agreed to terms with the Detroit Tigers on a new 10-year contract that will pay him $292 million, a baseball source said.

The new contract, which covers the two years remaining on Cabrera's current deal and eight additional years, is expected to become official later this week, the source said.

According to CBSSports.com, which earlier reported Detroit and Cabrera were closing in on an agreement, the new deal also includes two additional vesting options worth $30 million apiece for years 11 and 12 that could bring the total of the deal to $352 million.

Multiple media outlets have reported that Cabrera needs to pass a physical exam before his new deal is complete.

If the new contract is calculated as a single, 10-year entity, it will surpass the 10-year, $275 million deal that Alex Rodriguez signed with the New York Yankees in December 2007, as the largest in Major League Baseball history.