Orioles nearing deal with Trumbo (updated with terms)

The Orioles are nearing an agreement with free agent outfielder Mark Trumbo, pending a physical, according to an industry source.

The deal is for three years and below $40 million, according to the source.

The Orioles pulled their original offer as talks broke down, but the door never closed on a return. Executive vice president Dan Duquette values the draft pick attached to Trumbo, but both sides left open the possibility of a deal being struck.

Ownership placed a high priority on bringing back Trumbo shortly after the season ended with the wild card loss to the Blue Jays. It's created a situation similar to the one last winter with first baseman Chris Davis, who eventually agreed to a seven-year, $161 million deal after an earlier offer came off the table.

Trumbo led the majors with 47 home runs and had 108 RBIs after a Dec. 2, 2015 trade that sent catcher Steve Clevenger to the Mariners. His price steadily came down and into the Orioles' comfort zone.

The trade for Seth Smith could leave Trumbo as the primary designated hitter, though he might get some starts in right field. Duquette indicated that he'd like to add another left-handed hitting outfielder with plus defensive skills.

Putting Trumbo in the DH slot would impact Trey Mancini, who figured to get first crack at the job. It also could end the Orioles' interest in Pedro Alvarez.

Jon Heyman of FanRag Sports and MLB Network first reported that the sides were engaged again and could be nearing a deal.

Update: The agreement is in place and all that remains is the physical.

Update II: The agreement is for $37.5 million over three seasons, as Heyman first reported. Trumbo made $9.15 million last season.