Tim Lincecum

Giants and RHP Tim Lincecum avoided arbitration by agreeing to a two-year, $40.5 million contract.

The two sides agreed to the new contract earlier this week, but it didn’t become official until Lincecum passed a physical. The new deal will cover his final two years of arbitration and take him into free agency following the 2013 season. Lincecum, 27, has a 2.98 ERA and two National League Cy Young awards over his first five seasons in the big leagues.

Andrew Baggarly of the San Jose Mercury News reports that Tim Lincecum’s new two-year, $40.5 million contract with the Giants includes a limited no-trade clause.

The limited no-trade clause allows Lincecum to select a certain number of teams each year to which he can reject a deal. However, it’s not known which teams or how many teams are included. Lincecum’s new contract buys out his final two years of arbitration, but the two sides have left the door open for future talks regarding a long-term deal.

Hank Schulman of the San Francisco Chronicle reports that the Giants have reached agreement on a two-year, $40.5 million contract with right-hander Tim Lincecum.

The Giants were hoping to luck Lincecum up to a long-term contract this offseason, but the 27-year-old had a higher asking price than the club could reach. This deal buys out his remaining arbitration years, and allows him to test the open market in 2014. Lincecum registered a 2.74 ERA and 220/86 K/BB ratio in 217 innings last year for San Francisco and should remain a bonafide ace over the course of his new two-year deal.

According to CBS Sports’ Jon Heyman, the Giants are nearing a two-year deal with Tim Lincecum.

The Giants are negotiating multi-year deals with pitchers Tim Lincecum and Matt Cain, according to CBS Sports’ Jon Heyman.

“…while there are early indications they’ll have a decent or better chance to lock up Cain into his free-agent years,” writes Heyman, “the team seems to be focusing on deals of two years or one with Lincecum after he rebuffed an offer of at least $100 million for five years.” San Francisco offered Lincecum a two-year, $40 million contract extension, Tim Brown of Yahoo! Sports reported on Saturday. Sources close to Cain tell Heyman he will likely stay in San Francisco as opposed to eventually testing the free agent waters. Lincecum might be a different story. Lincecum requested $21.5 million (a record for a player with less than six years of service time) and was offered $17 million by the Giants when arbitration figures were exchanged Tuesday. Lincecum is due to hit free agency after the 2013 season and isn’t too keen on giving up any of his free agent years unless it’s part of a mega long-term contract.

The Giants have offered Tim Lincecum a two-year, $40 million contract extension, a source tells Tim Brown of Yahoo! Sports.

Lincecum’s reps countered at two-years and $44 million, so it sounds like an agreement will be reached. Earlier this week, Lincecum requested $21.5 million and was offered $17 million by the Giants when arbitration figures were exchanged, but a new deal now appears to be imminent. Lincecum is due to hit free agency after the 2013 season and has two years of arbitration remaining.

According to Andrew Baggarly of the San Jose Mercury News, the Giants and Tim Lincecum have made “significant progress” in negotiations on a new contract.

Tim Lincecum requested $21.5 million and was offered $17 million by the Giants when arbitration figures were exchanged Tuesday.

As expected, it shatters the previous record for the highest arbitration request by a player with less than six years of service time, topping Derek Jeter’s $18.5 million request in 2001. Roger Clemens requested $22 million after he accepted an offer of arbitration from the Astros as a free agent in 2005. Lincecum’s camp is reportedly aiming for a one- or two-year deal this offseason while the Giants would prefer a four-year contract that would buy out his first two years of free agency.

Tim Lincecum’s agent, Rick Thurman, told Andrew Baggarly of the San Jose Mercury News on Wednesday that he hasn’t spoken with the Giants in over a month.

Talks haven’t progressed since the Winter Meetings in Dallas last month and Thurman told Baggarly via text message that he is “just preparing his arbitration brief.” Lincecum remains under team control through 2013, but could make as much as $18-20 million through the arbitration process this winter. The Giants would prefer a four-year deal, buying out his first two years of free agency, while Lincecum’s reps appear to be focusing on a one- or two-year deal. Talks should ramp up after arbitration figures are exchanged next week.