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Orioles, Yovani Gallardo closing in on 3-year deal

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The sides appear to be ironing out the final parts of a deal, which could be completed soon.

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The Orioles and free-agent pitcher Yovani Gallardo are closing in on a 3-year deal, according to an industry source. The sides are still "waiting on a few things" before a deal can be finalized, but it appears that they are on track to strike an agreement and are optimistic about completion.

One hangup, according to sources, involves negotiations about whether the Orioles will include an opt-out clause that would allow Gallardo to elect free agency after the first or second year of the contract. Baltimore has previously been hesitant to give opt-out clauses to starting pitchers, but may have to change their philosophy to get a deal done with Gallardo.

Gallardo has drawn interest from many clubs this winter, and was in talks with two clubs other than Baltimore as of Monday. The Rockies, Royals and Astros have all shown previous interest, but appear to be out at this point.

Gallardo would replace Wei-Yin Chen in the Orioles' rotation, giving the team a solid veteran option alongside Chris Tillman, Kevin Gausman, Miguel Gonzalez and Ubaldo Jimenez. Baltimore also acquired Odrisamer Despaigne in a trade with the Padres last week.