The Kansas City avoided salary arbitration with new closer Kelvin Herrera when the two sides settled on a one-year, $5.325 million deal on Friday.
Herrera requested $5.6 million and the Royals offered $5.05 million.
The two-time All-Star will also receive a $50,000 bonus if he makes the All-Star team again in 2017.
Herrera expressed his gratitude on his personal Twitter account.
"The team and I have agreed to a settlement at the mid-point today," Herrera tweeted. "Even though the team had a 'File & Trial' policy and both sides were ready to go to a hearing, we have realized this is a time for us to be united as a family and put our differences aside.
"Thank you Royals fans for your support."
The file and trial comment is a reference to how some major league clubs -- including the Royals -- typically won't negotiate one-year deals once the club and player have exchanged arbitration figures.
Herrera went 2-6 with 2-6 with a 2.75 ERA and 12 saves last season. In five-plus seasons with the Royals, the right-hander is 19-23 with a 2.63 ERA.