SURPRISE, Ariz.-- Left-handed pitcher Derek Holland signed a five-year, $28.5 million deal with the Texas Rangers Tuesday morning.

The deal calls for salaries of $1 million this year, $3.2 million next year, $5.4 million in 2014, $7.4 million in 2015 and $10 million in 2016.

Texas holds an $11 million option for 2017 with a $1.5 million buyout. If the first option is exercised, the Rangers have an $11.5 million option for 2018 with a $1 million buyout. There are additional escalators.

The contract gives Holland, 25, the security of five years of guaranteed money, but the club gets the flexibility to tie him up for three years of his free-agency period. He was slated to become a free agent after the 2015 season.

At Holland's news conference Tuesday morning, he thanked his family and his minor league pitching coaches, who stood in the back as the announcement was made.

"I'm very excited to be a part of this," Holland said. "We've got an unbelievable team, we've got upcoming stars coming up in the organization and I want to be a part of that as well."

To do that, Holland is possibly giving up the chance to get out on the free-agent market sooner.

"I know I gave up that stuff, the three years, but to me it's all about being in Texas and wearing that Texas uniform and going and getting some championships," he said.

Holland, originally from Ohio, intends to purchase a home in Texas.

"The most important thing for me is getting a house in Dallas, being a resident in Texas," he said.

Holland, who became a fan favorite with his mustache and his impressions, was 16-5 with a 3.95 ERA in 198 innings (32 starts) in 2011, taking an important step in his maturation process.

From July 7 on, Holland was 10-1 with a 2.77 ERA in his final 15 regular-season starts, and won 12 of his final 13 decisions.