9:18 PM ET: The Associated Press (through SI.com) is reporting that Capps will make $4.5 million in 2012, and the Twins hold a $6 million option on him for 2013 that has a $250K buyout attached. Overall, he's guaranteed $4.75 million over one season.

8:05 PM ET: According to Jon Heyman of SI.com, the Minnesota Twins have signed free agent relief pitcher Matt Capps. The agreement is pending a physical later in the week.

Capps was acquired from the Washington Nationals in July of 2010, going to the Minnesota Twins in exchange for catcher Wilson Ramos. Capps leaving thins the market, but Ryan Madson is still the top closer on the free agent market.

It is not surprising that Capps stays with the Twins. The other teams with reported interest were the Toronto Blue Jays and Boston Red Sox. Last season Capps put up a 4.7 strikeouts through nine innings, the lowest of his career. He also had an ERA of 4.25. With Joe Nathan signing on Texas with the Rangers, Capps is likely to be the Twins closer in 2012.

The financials of the deal have not been disclosed and will likely be announced soon, presumably assuming that Capps passes his physical later on in the week. Steve Popper of the Bergen Record reported earlier today that Capps was likely to stay in Minnesota.

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