The Boston Red Sox and designated hitter David Ortiz are nearing an agreement on a two-year contract that the team hopes to announce before the end of the week, reports Gordon Edes of ESPNBoston.com:

The Boston Red Sox are finalizing the terms of a two-year deal with free agent designated hitter David Ortiz that they hope to announce before the end of the week, according to a baseball source.

Edes adds that while the two-year length of the new deal has been agreed upon, the Red Sox and Ortiz are "still haggling on compensation."

It’s been reported that the slugger is seeking a two-year agreement in the $25 million range. Boston is in the neighborhood, according to Edes, but they are hoping to sign him for a "few million less." However, the negotiations aren’t expected to get in the way of the completion of the deal.

Ortiz put together another impressive campaign this year, hitting .318/.415/.611 with 26 doubles and 23 home runs over 324 at-bats. The 36-year-old joined the Red Sox in January of 2003 and has hit .290/.389/.573 over his 10 seasons in Boston.