David Price, the American League Cy Young Award winner, has reached agreement on a one-year contract with the Tampa Bay Rays to avoid salary arbitration, a baseball source told ESPN.com.

Terms of Price's deal with the Rays weren't immediately available. Price made $4.35 million last season, and was projected to earn more than $9 million in 2013 because of his service time and track record.

He will be eligible for free agency after the 2015 season.