NEW YORK -- Derek Jeter and the New York Yankees came to terms on his new contract after a final face-to-face meeting, which occurred in the New York area on Saturday, according to sources with knowledge of the negotiations.

Jeter, agent Casey Close, Yankees owner Hal Steinbrenner, president Randy Levine and general manager Brian Cashman all were present.

The meeting took place to complete the contract and heal wounds that occurred during the testy negotiations.

According to an official with knowledge of the contract, the guaranteed portion is $51 million over three years. There's an $8 million player option for a fourth year. The guaranteed portion includes a $3 million buyout if Jeter were to decline the option for 2014. If he exercises it, he would earn a total of $56 million over the four seasons.

The option year could increase in value by as much as an additional $9 million based on incentives, which are defined as points. Jeter would get $1 million for each point he earns. He can earn points by finishing in the top six in the MVP voting or winning a Gold Glove, a Silver Slugger, a regular season MVP, an ALCS MVP or a World Series MVP. Some of the awards are worth multiple points and thus multiple millions. If Jeter were to earn at least nine points, his incentives would be capped at $9 million, bringing the maximum value of the contract to $65 million over four years.

Those terms, obtained through conversations with several sources who requested anonymity, represent a pay cut of approximately $2 million to $3 million a season -- depending on the option year and the incentive clauses -- from the 10 year, $189 million contract Jeter finished. The Yankees did, however, increase their initial offer of $45 million over three years.

Finishing the deal will allow Cashman to know how much money he has in his budget heading into the winter meetings, which begin Monday in Orlando, Fla. The Yankees are expected to make a strong bid for free-agent pitcher Cliff Lee and possibly outfielder Carl Crawford.