The Giants and Matt Cain have agreed to a three-year contract extension, writes Andrew Baggarly of the Mercury News. The deal, which will cover Cain through the 2012 season, buys out one year of the hurler's free agency. On Friday, Henry Schulman of the San Francisco Chronicle speculated (via Twitter) that the Giants could be close to an extension with the 25-year-old.
Baggarly tweets that Cain will still make $4.5MM in 2010, $8MM in 2011, and $15MM in 2012. The new agreement voids Cain's old contract, in which he would have earned $4.25MM in 2010 with a $6.25MM club option for the following year. The old contract also included escalators based on innings pitched and games started that could have tacked another $1.9MM onto the 2011 option.