The terms of the deal have yet to be announced, but there was a reported two-year offer on the table that manager Dusty Baker said they were hoping he would accept.
Not much of a market ever developed for Ludwick, with a few teams showing interest, but never anything too serious. Ludwick, 34, hit 26 home runs for the Reds in 2012 while batting .275/.346/.531, doing so while hitting in the offense-friendly Great American Ballpark.
Ludwick hit three home runs in last year's postseason, playing in just five games as the Reds were eliminated in the National League Division Series by the eventual World Series-winning San Francisco Giants.
The Reds had been linked to a few members of the remaining outfield market, but this signing makes it unlikely that they will pursue another outfielder. This specifically affects the Dexter Fowler and Michael Bourn markets.
The Reds finished in first place in the National League Central last season, and certainly hope to repeat that performance moving into next season.