SANTO DOMINGO -- Cuban left handed starter Gerardo Concepcion, an 18-year-old phenom who defected last June, has reached a $7 million guaranteed contract with the Chicago Cubs, a source close to the negotiation told ESPNdeportesLosAngeles.com.

According to the source, the deal is filled with incentives that could up the money to $8 million. The transaction will not be official until Concepcion passes a physical, the source added.

Concepcion was the Rookie of the Year in the Cuban National Series in 2010-11. He had a 10-3 record with an ERA of 3.36 in 21 outings, 16 of which were starts, with the Industriales de la Habana.

Concepcion left the Cuban National team at the World Port Tournament in Rotterdam, Holland -- the same tournament from which Aroldis Chapman defected to later sign a $30 million deal with the Cincinnati Reds.

After establishing his residency in Mexico, Concepcion was declared a free agent by Major League Baseball and is now training in the Dominican Republic, where Cubs owner Tom Ricketts visited Thursday to announce the construction of a new baseball academy and player development facility.

Enrique Rojas is a reporter for ESPNdeportesLosAngeles.com.