An organization source said the deal will pay Pelfrey $3.925 million during the upcoming season. He can earn $50,000 extra in performance bonuses.
Pelfrey, who turned 27 last Friday, made $3.3 million in 2009 as part of his original deal after signing as a first-round pick in 2005. But he did not yet have enough service time last offseason to be arbitration-eligible, so his salary dipped to $500,000 this past year.
He raced to a 9-1 start last season before a summer swoon, but nonetheless finished with a 15-9 record and 3.66 ERA while logging a career-high 204 innings. Pelfrey is eligible for free agency after the 2013 season.
Angel Pagan and R.A. Dickey also are arbitration-eligible and are due to exchange salary figures today for a February hearing if there's no settlement.