Rather than opt out of the final two years and $30 million on his contract, New York Yankees closer Aroldis Chapman has agreed to an extension to remain with the team, reports ESPN's Jeff Passan. Passan says the new extension adds one year and $18 million to Chapman's contract, so he is now owed $48 million from 2020-22.

Chapman, 32 in February, saved 37 games with a 2.21 ERA and 85 strikeouts in 57 innings this past season, earning him the American League Reliever of the Year award. He pitched to a 2.61 ERA with 247 strikeouts in 158 2/3 innings in the first three years of the five-year, $86 million contract the Yankees gave him in December 2016.

Of course, the Yankees' season ended when Chapman surrendered a two-run walk-off home run to Jose Altuve in Game 6 of the ALCS last month. That wouldn't have hurt his market in free agency, however. Chapman has been one of the game's elite relievers for the better part of a decade now and he has a long track record of excellence.

As good as he's been Chapman is not without red flags. Most notably, his trademark velocity is slipping. From 2016-19, his average fastball velocity has declined from 101.1 mph to 100.1 mph to 99.2 mph to 98.3 mph. Velocity loss is normal at Chapman's age, and he has compensated with an improved slider, but it's still something the Yankees had to consider during negotiations. 

Relievers are still getting paid well even in this frigid free agent climate. Craig Kimbrel, one of Chapman's few comparable players, received a three-year deal worth $43 million last offseason. He had to wait until June to sign that contract, but he did get it. Pretty much any contender with bullpen questions figured to check in on Chapman had he opted out.

With Chapman signed, the Yankees now figure to focus on improving their rotation this offseason. Free agent Gerrit Cole, who they once drafted in the first round, is a possible target. Free agents can begin signing with new teams Monday.