Giants, Lincecum Avoid Arbitration, Agree To $40.5M Contract

(CBS) -- The San Francisco Giants and former Cy Young winner Tim Lincecum have agreed to a two-year, $40.5 million contract extension, according to Henry Schulman of the San Francisco Chronicle.

Lincecum filed for a one-year, $21.5 million deal, the Giants countered at $17.5 million for one-year.

The agreement allows both sides to avoid an arbitration hearing that could have set an arbitration contract record.

Dodgers pitcher Clayton Kershaw is currently negotiating with the Dodgers, the 2011 Cy Young winner could end up at an arbitration hearing if the southpaw and the club can't agree to a new extension.