Update 9:00 PM ET: It's a non-guaranteed deal and Hensley will need to win a job out of spring training, according to Hank Schulman of the San Francisco Chronicle.
Original Story 8:30 PM ET: The San Francisco Giants and right-handed reliever Clay Hensley have agreed to terms on a one-year deal, according to Jerry Crasnick of ESPN.com. Hensley will earn a base salary of $750K in 2012, but can make another $300K through bonus incentives and awards, Crasnick adds.
Hensley, who was actually drafted by the Giants in 2003, returns to San Francisco hoping for a turnaround from a poor 2011 season.
After a good 2010 campaign, the 30-year-old's 2011 took a turn for the worst. Not only did the righty reliever's ERA skyrocket over three full runs, but the strikeouts significantly dropped and the walks rose. And because of that, Hensley's fWAR sank below replacement level (-0.1).