The Orioles have agreed to sign Luis Ayala to a one-year, $925K deal that is pending a physical. The deal includes a $1MM team option for 2013 ($100K buyout). Ayala has a base salary of $825K in 2012 and could earn more by reaching incentives. The Orioles have announced their deal with the Paragon Sports International client.

Ayala, 34, posted a 2.09 ERA with 6.3 K/9, 3.2 BB/9 and a 50% ground ball rate in 56 innings for the Yankees last year. The Red Sox, Rays, Yankees, Blue Jays, Angels, Mets and Tigers were all linked to him earlier in the offseason.

Roch Kubatko of MASNsports.com first reported the agreement and Dan Connolly of the Baltimore Sun added the terms. Alden Gonzalez of MLB.com, Ken Rosenthal of FOX Sports and MLBTR added detail (Twitter links).