Update 8:24 PM ET: Jeff Wilson of Fort Worth Star-Telegram reports the deal is worth $14.5 million with a club option.

Update 8:20 PM ET: Nathan will get about $7 million per year, according to SI's Jon Heyman.

Update 8:16 PM ET: FOX Sports' Ken Rosenthal reports Nathan will receive a two-year contract with a club option.

The Texas Rangers and right-handed reliever Joe Nathan have agreed to terms on a contract, accordingto T.R. Sullivan of MLB.com. Nathan, who turns 37 tomorrow, is guaranteed $15 million for the next two years. It appears this signing will move Rangers closer Neftali Feliz to the starting rotation.

Joe Nathan became a free-agent after the Minnesota Twins declined his $12.5 million option for 2012, instead the team exercised a $2 million buyout. 

I thought Joe Nathan would land with the Toronto Blue Jays, after we heard they were pushing hard for a closer last week. Kudos to the Rangers front office for making a fantastic signing and, just as importantly, moving Neftali Feliz to the rotation.