Ottavino, 30, is in his second year of arbitration eligibility, meaning that the deal will cover his final two arbitration years and one year of free agency. The right-hander has been with Colorado since 2012, and is now locked up through the 2018 season.
Ottavino has been an effective reliever for the Rockies, posting an 8-8 record and 3.44 ERA over the last four seasons while saving four games. He made 10 scoreless appearances for Colorado before undergoing Tommy John surgery last summer, and is expected back in the middle of next season.
For the Rockies, the deal provides some cost certainty and the opportunity to lock up an effective reliever for three years at a price much lower than free-agent bullpen options have received this season. Ottavino, who is recovering from his second Tommy John procedure, gets some financial security after earning $2.293 million to this point in his career.