Kyle Farnsworth reportedly reached terms with the Royals. Kyle Farnsworth reportedly reached terms with the Royals. (Steve Nesius/Associated Press)

Free-agent reliever Kyle Farnsworth reached terms Thursday on a two-year, $9.25-million US contract with the Kansas City Royals.

Farnsworth, 33, will pocket $4.25 million US next season and $4.5 million US in 2010, with an additional $750,000 US available in annual performance bonuses.

He must pass a physical to finalize the pact with the Royals, who retain a $5.25-million US option for 2011 with a $500,000 US buyout.

Farnsworth split 61 appearances last season between the New York Yankees and Detroit Tigers, posting a 2-3 record with a 4.48 earned-run average and one save in four opportunities.

The veteran right-hander is 30-48 lifetime with a 4.47 ERA and 27 saves in 612 appearances (26 starts) since breaking into the majors on April 29, 1999.

He has pitched for the Chicago Cubs, Atlanta Braves, Tigers and Yankees.

Royals ink Ramirez, Waechter

Kansas City also re-signed pitcher Horacio Ramirez and inked former Florida Marlins reliever Doug Waechter.

Contract terms were not disclosed.

"Our expectation is that Horacio Ramirez will be a part of our starting rotation in 2009," Royals general manager Dayton Moore said in a statement. "Waechter will come in to provide depth to our relief corps."

Ramirez pitched 15 times in relief last season, finishing 1-1 with a 2.59 ERA.

The 29-year-old left-hander permitted 21 hits with 11 strikeouts and one walk in 24 1/3 innings.

Wachter, 27, went 4-2 with a 3.69 ERA and one save in 48 trips out of the bullpen last season, his first for the Marlins.

The right-hander pitched for the Tampa Bay Rays from 2003-06.

With files from the Associated Press