Jan 19, 2010 3:50 PM EST

Jonathan Papelbon and the Boston Red Sox came to terms Tuesday on a one-year deal worth $9.35 million, according to an industry source. The deal, which could escalate to $9.5 million with incentives, means the Red Sox and Papelbon will avoid arbitration for the second straight offseason.

The contract is the largest ever for a relief pitcher with four years or less in service time, topping Eric Gagne's $8 million in 2005.

Via ESPN