UPDATE: Richard Durrett of ESPN reports a source has told him that Holland's deal also includes club options for 2017 ($11mil) and 2018 ($11.5mil), plus incentives. If both options are exercised Holland's deal will cover seven years and approximately $51 million.
Derek Holland agreed to a five-year contract extension with the Texas Ranger worth around $28 million this morning, reports Jon Heyman of CBS Sports.
With the deal, Holland, 25, is now signed with the club through the 2016 season. The deal covers his arbitration years (2013-2015) and his first year of free agency. The new deal will supersede the one-year deal that Holland signed at the beginning of spring training.
The 6' 2" left-hander threw 198 innings for the Rangers last season, racking up 162 strikeouts and a 3.95 ERA good enough for 2.7 rWAR.
The Rangers now look set for starting pitching for at least the next few years, with five of their six starters either under contract or in arbitration through 2014. Colby Lewis will be a free agent at the end of this season.
Heyman reports that Jeff Wilson of the Fort Worth Star-Telegram was the first to break the news.