Pitcher Clay Holmes and the New York Mets have agreed to a $38 million, three-year contract, a person familiar with the negotiations told The Associated Press on Friday.

The person spoke on condition of anonymity because the agreement for the 31-year-old right-hander was subject to a successful physical.

Holmes can earn $13 million for each of the first two seasons and $12 million for 2027. He can opt out after the 2026 season and become a free agent again, the person said.

His agreement was first reported by The New York Post.

Holmes developed into a dominant closer with the New York Yankees after he was acquired from Pittsburgh in July 2021, becoming a two-time All-Star. But he struggled this year with control and allowing hits on soft contact. Holmes lost his closer’s job to Luke Weaver after allowing a game-ending grand slam to Texas rookie Wyatt Langford on Sept. 3.

He was 3-5 with a 3.14 ERA and a career-high 30 saves in 67 appearances, leading the major leagues with 13 blown saves. Rediscovering his sinker, he became an effective setup man for the Yankees in the postseason, going 3-1 with a 2.25 ERA in 13 games.

Holmes’ sinker averaged 96.6 mph this season and he threw it 56% of the time, along with 23% sliders and 21% sweepers.

He had 74 saves in 95 chances with the Yankees over the last three years. Holmes is 24-22 with a 3.71 ERA in seven major league seasons.

After reaching the NL Championship Series and losing to the eventual World Series champion Los Angeles Dodgers, the Mets added right-hander Frankie Montas with a $34 million, two-year contract.

Right-hander Luis Severino, who led the Mets in innings with 182, left as a free agent for a $67 million, three-year deal with the Athletics, and left-handers Sean Manaea and Jose Quintana remain on the market.

Also Friday, the Mets announced minor league contracts with right-hander Grant Hartwig and outfielders Edward Olivares and Alex Ramírez. New York also acquired right-hander Sean Harney from Tampa Bay for 2024 international bonus pool allocation.