David Ortiz has reached agreement with the Red Sox on a two-year, $26 million contract with incentives that could raise the value of the deal to $30 million.

The sides reached agreement on Friday night and was confirmed by a source with direct knowledge of the situation.

As fully anticipated, the Red Sox extended a qualifying offer to prospective free agent David Ortiz Friday night, ensuring that, at the very least, the Sox will get a compensation pick should Ortiz sign elsewhere.

The offer -- which is standard across the board, regardless of 2012 performance or any other factor -- is worth $13.3 million, or the average of the top 20 percent of highest-paid players in game last season.

Ortiz has until next Friday to accept or decline. If he accepts, he agrees to play 2013 for that $13.3 million figure. If he declines, he can still negotiate with the Red Sox.

Should the Sox lose Ortiz to another team, they will receive a sandwich pick after the first round.