The deal is for 2-years/$15 million, reports Nick Piciero of AZCentral Sports.
McCarthy pitched the last two season for the Oakland Athletics, reviving his career after being seemingly on his way out of baseball.
He was struck in the head by a line drive and faced a difficult road back, with his life even being on the line at one point. He suffered a fractured skull in the incident and missed the rest of the season.
The once top prospect is now 29 years old, sporting a career 4.02 ERA, including 3.32 and 3.24 over the last two seasons.
McCarthy made $4.275 million last season, and it is hard to tell whether he will be able to top that with this contract based on his shortened season.
The deal is pending a physical.