The Rockies have signed Rafael Betancourt to an extension that will keep him in Denver through 2012 according to ESPN's Enrique Rojas (Spanish link). Troy Renck of the Denver Post adds that the one-year extension carries a mutual $4.25MM option with it.
Betancourt, 36 in April, was already under contract for 2011 at $3.77MM. The new deal guarantees him $4MM in 2012, and there's a $250K buyout on Colorado's half of the mutual option. If Betancourt declines his half of the deal, there's no buyout. If he's traded, the buyout becomes guaranteed.
The Rockies acquired Betancourt prior to the 2009 trade deadline in exchange for minor leaguer Connor Graham, and he's been nothing short of oustanding in their bullpen. Since the trade, the right-hander owns a 3.08 ERA and has fanned more than 12 hitters per nine innings while walking less than two per nine.