First baseman Brandon Belt and the San Francisco Giants agreed to a one-year, $2.9 million contract on Tuesday night before a scheduled arbitration hearing in Florida.
The 25-year-old Belt was seeking $3.6 million and the Giants had offered $2.05 million in their arbitration filing.
Belt and his representatives had traveled to Florida to meet with a three-person arbitration panel on Wednesday. It would have been the Giants' first arbitration hearing since 2004 when the panel sided with catcher AJ Pierzynski.
Giants general manager Brian Sabean hopes to enter into discussions with Belt's representatives this spring about a long-term contract. Belt is not eligible to become a free agent until the end of the 2018 season.
Last season, Belt batted .289 with 17 home runs and 67 RBIs in 150 games. He has a career .273 batting average with 33 homers and 141 RBIs in three years with the Giants.
The Giants were to hold their first full-squad workout of spring training on Wednesday in Arizona.