SAN DIEGO (AP) — A person familiar with the negotiations says slugger Kendrys Morales and the Kansas City Royals have agreed to a $17 million, two-year contract.

The person spoke on condition of anonymity Thursday because the agreement with the AL champions was subject to him passing a physical.

Morales figures to take over at designated hitter from Billy Butler, who left as a free agent and agreed to a $30 million, three-year deal with Oakland.

Morales will get $6.5 million next year and $9 million in 2016. The deal includes an $11 million mutual option for 2017 with a $1.5 million buyout. Morales can make an additional $750,000 in performance bonuses in each of the first two seasons based on plate appearances: $50,000 for 375 and $100,000 apiece for 400 and each additional 25 until 550.