11:02pm: The deal is worth $2MM over two years, tweets Jon Heyman of CBSSports.com.
Arredondo, a right-hander, was eligible for arbitration for the first time this offseason as a Super Two, so he'll have two remaining years of arbitration eligibility after this deal expires. He's slated to hit free agency after the 2015 season.
Arredondo, 28 in March, rebounded with the Reds in 2011, his first season in Cincinnati, after missing the entire 2010 campaign due to Tommy John surgery. He burst onto the Major League scene in 2008 with the Angels, posting a 1.62 ERA in 61 innings for Anaheim.
For his career, the native Dominican has put up a 3.40 ERA, 1.31 WHIP, 8.5 K/9 and 4.3 BB/9 in 159 innings.
Jon Heyman of CBSSports.com first reported the sides were nearing a two-year deal last week.