MONDAY, 8:27pm: Harding is up with a story now that includes contract details. The Rockies will pay Olivo $2MM in 2010, and then either exercise a club option for $2.5MM in 2011, or go with a $500K buyout.
MONDAY, 4:56pm: MLB.com's Thomas Harding tweets that an agreement has been reached on a one-year deal with a 2011 option.
WEDNESDAY, 7:35pm: Troy Renck of the Denver Post says Olivo's contract is for one year with a club option. Renck also reports that the Rockies and Torrealba solved the issue of the $400K salary gap, but were instead held up by how a reported two-year, $6MM deal would be paid out over 2010 and 2011. Renck outlines the whole situation in a blog post and notes that the Mets and Giants are both interested in Torrealba.
5:25pm: Free-agent catcher Miguel Olivo and the Rockies "are attempting to work out final details" on a deal that would make Olivo the new backup in Colorado, reports Tracy Ringolsby of FOX Sports.
Olivo hit .249/.292/.490 in 416 plate appearances with Kansas City last season, leading the Royals with 23 home runs. It wouldn't be a surprise to see Olivo earn regular playing time in Colorado given that Iannetta ended up losing the starting job to Yorvit Torrealba down the stretch last season (though, to be fair, Iannetta posted an .804 OPS himself in 2009 and is the clear incumbent given his new contract).
Should Olivo sign with Colorado, it would close the door on any chance of Torrealba re-signing with his former club. Torrealba and the Rockies were in talks earlier this winter, but apparently couldn't close the gap on a $400K difference between Torrealba's demands and what the Rockies wanted to pay him.