Rick Hahn made an instant splash Tuesday night in one of his first official duties as White Sox general manager when he re-signed potential free agent Jake Peavy while retaining Gavin Floyd for at least one more season.

By signing Peavy to a two-year, $29 million extension and picking up the $9.5 million option on Floyd, Hahn stabilized the Sox rotation while retaining flexibility entering the teeth of what figures to be an eventful offseason

The Peavy move was stunning, considering that his new agent, Jeff Berry of CAA, expressed a desire to have his client test the free agent market for the first time.

But Hahn made his first offer Oct. 8, and negotiations accelerated in the 72 hours before the deal was made.

Both sides showed some flexibility, as Peavy gave up the chance to hit the open market if he had waited past Friday night while consenting to a shorter deal. The Sox spread Peavy's $4 million buyout over 2016-19 to give themselves more salary flexibility. Peavy's contract includes a $15 million player option for 2015 if he reaches specific innings pitched thresholds in the next two seasons.

"I never wanted to play any games with my desire to stay in Chicago," a delighted Peavy told reporters in a conference call.

Hahn knew the Sox were operating with some sense of urgency because of Friday's deadline.

"The odds of (re-signing free agents) decrease once you get on the market," said Hahn, who currently has $89.25 million earmarked for nine players for 2013.

The Sox declined the options on third baseman Kevin Youkilis and reliever Brett Myers, who each received a buyout. Hahn continues to talk to their representatives as well as with free agent catcher A.J. Pierzynski, but he didn't believe the Sox would make qualifying offers of $13.3 million to them by Friday.