The Rangers agreed to a two-year deal with Josh Hamilton:

The deal, four days before a scheduled arbitration hearing in Phoenix, covers his last two arbitration-eligible seasons. Hamilton can become a free agent after the 2012 World Series.

Hamilton gets a $3 million signing bonus, a $7.25 million salary this year and $13.75 million in 2012.

It’s a good deal for Texas even if Hamilton’s production drops by 50%. I do find it interesting that they did not buy out his first year of free agency. Given his problems of the past, the chance of a relapse is a real possibility. Both sides say they want the relationship to be long term. Maybe they just couldn’t work out a longer term deal at this point, but I can’t blame the Rangers if they are being cautious.