The Cincinnati Reds have avoided arbitration with right-hander Mat Latos, as sides have reached an agreement on a two-year contract extension, the team has announced. The two year deal is worth $11.5 million, according to Mark Sheldon of MLB.com.

The extension will buy out the first two years of Latos' arbitration eligibility. He will be eligible for arbitration one final time prior to the 2015 season.

The Reds acquired Latos last offseason from the San Diego Padres in exchange for Yonder Alonso, Brad Boxberger, Yasmani Grandal and Edinson Volquez. In his first season with Cincinnati the 25-year-old maintained a 3.48 ERA with a strikeout-to-walk ratio of 2.89. Over four seasons in the majors he owns a career record and ERA of 41-33 and 3.41 with a strikeout-to-walk ratio of 3.01.

Latos earned $550k last year and filed for $4.7 million through the arbitration process. The Reds countered with an offer of $4.15 million.

Beyond Latos, the Reds' rotation consists of Johnny Cueto, Bronson Arroyo, Homer Bailey and Aroldis Chapman. With Latos signed, Bailey is the Reds' only remaining unsigned arbitration-eligible player.