Valdez, 24, drew interest from many clubs, including the Boston Red Sox, before signing with the Cubs. He will likely play either second base or shortstop for Triple-A Iowa in 2014, and could provide infield depth for Chicago's major league club throughout the season.
Valdez has spent the last eight seasons in the Padres' system, hitting .252 with 56 HR and 345 RBI while registering 137 stolen bases. After spending most of his career at second base, he has played shortstop for Double-A San Antonio over the past two seasons. In 253 games at Double-A, he posted a .238 average with 22 HR and 95 RBI over the last two seasons.
Valdez is the second former Padres prospect to sign with the Cubs this offseason, joining outfielder Aaron Cunningham.