The four-season deal will pay the Pac-10 at least $3 million per year to move from its current agreement with the Holiday Bowl in San Diego.
"The Pacific-10 Conference is very excited about reaching an agreement with the Valero Alamo Bowl," Pac-10 commissioner Larry Scott said. "We view it as a significant enhancement to the conference bowl lineup. San Antonio is a marvelous postseason destination and the Valero Alamo Bowl has positioned itself as one of the elite bowl games."
The Alamo Bowl is negotiating with the Big 12 to provide the other side of the matchup and is expected to have a deal in place with the conference in the next few weeks.
Big 12 blog
ESPN.com's David Ubben writes about all things Big 12 in his conference blog.
The Pac-10 was an original partner of the Alamo Bowl, providing teams in the bowl's first two years of operation in 1993 and 1994. The Big Ten began its current association with the Alamo Bowl the following year.
The Alamo Bowl currently matches the No. 4/No. 5 team from the Big Ten against the No. 4/No. 5 team from the Big 12.
Tim Griffin covers college football for ESPN.com. You may contact him at email@example.com.