Dan Haren became a free agent after the Los Angeles Angels failed to work out a trade and then declined the pitcher's 2013 option.
Haren, a three-time All-Star from 2007-09, gets a $3.5 million buyout under the deal, which included a $15.5 million club option for 2013.
Hours earlier on Friday, the Angels agreed to trade Haren to the Chicago Cubs for closer Carlos Marmol. But the deal fell apart, a person familiar with the negotiations told The Associated Press.
The person spoke Friday night on condition of anonymity because the trade did not get completed.
Marmol's contract gives him the right to submit a list of up to five teams he can't be traded to without his consent. The person said Marmol told the Cubs he would consent to the trade, but would not say whether the reliever provided his written consent.
The trade agreement was first reported by the Chicago Sun-Times. A spokesman for the Cubs declined to comment.
The Angels had until midnight EDT on Friday to exercise Haren's option for next season. The 32-year-old right-hander went 12-13 with a career-worst 4.33 ERA in 30 starts this year and was on the disabled list for the first time.
Haren became the second starting pitcher in three days to be jettisoned by the busy Angels. They shipped Ervin Santana to the Kansas City Royals on Wednesday for minor league left-hander Brandon Sisk.
Marmol, an All-Star in 2008, had 114 saves for the Cubs over the past five years. Yet he lost his job as the team's closer several times due to ineffectiveness and a lack of control.

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