"The Brewers will announce at a 3 p.m. news conference today that right-hander Yovani Gallardo is signing a five-year contract extension with an option for a sixth year.

The deal includes tearing up Gallardo's 2010 contract for $450,000 and replacing it, so the five years go through 2014 with an option for 2015. I have not heard the financial terms of the deal yet.

Gallardo's first free-agent year is 2014, so the Brewers are buying out all three arbitration years plus that first free agent year. I don't know if the option for 2015 is a club option, mutual option or a vesting option (based on earlier performance).

So, the Brewers are tying up their top young pitcher in a deal that probably is good for both club and player.

The Brewers just put out a release and here is the statement from GM Doug Melvin:

"We are thrilled to sign one of our top young players to a long-term deal. "We view Yovani as a top of the rotation performer who has a chance to become one of the elite pitchers in the game. He is the cornerstone of our starting rotation and the ideal pitcher to build our staff around for future seasons.""