The California native announced his move in a YouTube video Friday. The Dodgers have yet to confirm the agreement, which is pending a physical.
"This season is about making sure history remembers us as we wish to be remembered," Bauer said in the video. "This season is about adding to our legacy. And I can't wait, Dodger fans."
League sources told ESPN and MLB Media that Bauer is signing a three-year, $102 million fully guaranteed deal with the Dodgers. According to the outlets, the contract contains opt-out clauses after the first and second years. He is set to earn $40 million in 2021 and $45 million in 2022.
Once the agreement is finalized, Bauer will become the highest-paid player in Major League history in 2021 and again in 2022. According to Spotrac, Bauer's $40 million salary for the 2021 season is higher than the projected 26-man payroll of the Pittsburgh Pirates ($30 million), Baltimore Orioles ($34.2 million) and Cleveland Indians ($36.5 million).
The 30-year-old Bauer, a first-time free agent, was the first reigning Cy Young Award winner to enter free agency since Greg Maddux in 1992.
Bauer was one of the league's most dominant pitchers in the pandemic-shortened 2020 season, posting a 5-4 record and 1.73 ERA. He notched 100 strikeouts and had a 0.79 WHIP.
Bauer previously rejected a one-year, $18.9 million qualifying offer from the Reds, who will receive a compensatory draft pick after his decision to sign with another team. The Dodgers will forfeit their second-highest pick in the July amateur draft and $500,000 of international signing bonus allocation.
In 205 career games (195 starts) between the Arizona Diamondbacks, Indians and Reds, Bauer -- an All-Star selection in 2018 -- posted a 75-64 record and 3.90 ERA. He tallied 1,279 strikeouts over 1,190 innings.