CHICAGO — Pitcher Jake Peavy and the Chicago White Sox agreed Tuesday to a $29 million, two-year contract.
The right-hander will receive $14.5 million in each of the next two seasons. Peavy would receive a $15 million option for 2015, depending on innings during the next two years.
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Peavy's previous deal included a $22 million option for next season with a $4 million buyout. The buyout will be paid in equal installments from 2016-19.
The 2007 NL Cy Young Award winner went 11-12 with a 3.37 ERA in 32 starts this year after three injury-riddled seasons and helped the White Sox finish second in the AL Central.
"I'm really excited to come back to Chicago and build on what we did last year," Peavy said in a statement. "I made no secret of the fact that this is where I want to play. Chicago is a great city with great fans, and I can't think of a better place to try and win a championship. With the guys we have coming back, I think we have a great opportunity to accomplish some special things."
Chicago also exercised a $9.5 million option on right-hander Gavin Floyd, declined a $10 million option on right-hander Brett Myers and turned down a $13 million option on third baseman Kevin Youkilis. Myers gets a $3 million buyout and Youkilis $1 million.
Floyd was 12-11 with a 4.29 ERA and 144 strikeouts in 29 starts last season, his fifth straight year with double-digit wins.
Youkilis helped solidify third base for the White Sox after a trade from Boston in late June and batted .236 with 15 home runs in 80 games for Chicago.
Myers was 3-4 with a 3.12 ERA in 35 relief appearances with Chicago after being acquired from Houston on July 21.
Peavy, meanwhile, re-established himself as an ace alongside Chris Sale and made his third All-Star team.
He reached 200 innings for the fourth time in his career and the first since his Cy Young season with San Diego, finishing with 219 this year. His 194 strikeouts were his most since 2007 when he had 240, and his four complete games were both a career high and the most by a White Sox pitcher since Mark Buehrle threw five in 2004.
"Jake Peavy showed again last season why he is capable of being one of the top pitchers in the American League," White Sox general manager Rick Hahn said in a statement. "Early on in this process, Jake expressed his strong desire to remain with the White Sox, and we're happy to reach a deal that keeps him at the top end of our rotation and his influence in our clubhouse for at least the next two years."