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Baltimore Orioles starter Kevin Gausman delivers a pitch during the first inning of a baseball game against the Texas Rangers, Wednesday, Aug. 3, 2016, in Baltimore.
Baltimore Orioles starter Kevin Gausman delivers a pitch during the first inning of a baseball game against the Texas Rangers, Wednesday, Aug. 3, 2016, in Baltimore. (Nick Wass / AP)

The Orioles settled with right-hander Kevin Gausman on a $3.45 million contract for 2017, according to an industry source, allowing the club to avoid salary arbitration with one of its brightest young stars.

Gausman, who is in his first year of arbitration, was set for a hearing this week after filing for $3.55 million. The team countered with a $3.15 million salary, and at the time, the expectation was that the Orioles would go to trial with every player who did not agree to their offer.

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However, last week, the team offered a midpoint settlement for catcher Caleb Joseph ahead of his hearing. The two sides couldn't agree on a deal, and Joseph lost his arbitration case.

According to Fox Sports, which first reported Gausman's agreement, the contract has built-in bonuses of $50,000 if Gausman reaches 30 and 33 starts in 2017.

Last season, he started a career-high 30 games while going 9-12 with a 3.61 ERA in 179 2/3 innings. The Orioles are counting on a strong full season from Gausman as one of the keys to improving a rotation that returns all the same pieces from a year ago.

The agreement allows him to report to spring training next weekend having avoided what he thought would be a "weird" situation when he spoke on his looming hearing at FanFest last weekend.

The remaining case on the team's arbitration docket is for reliever Brad Brach, who filed for a $3.05 million salary against the team's $2.525 million offer.

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