A contract agreement between the Los Angeles Dodgers and Hisashi Iwakuma has hit a snag after the team reviewed the right-hander's physical, according to a source.

The two sides have continued to talk in hopes of keeping the deal alive.

Los Angeles agreed to a reported three-year, $45 million contract with Iwakuma earlier this month.

The Japan-based Jiji Press first reported earlier Thursday that the Dodgers were backing away from the deal after evaluating the results of Iwakuma's physical.