KANSAS CITY, Mo. (AP) — Luke Hochevar and the American League champion Kansas City Royals have completed a $10 million, two-year contract that includes a mutual option for 2017.

The team announced the move Thursday.

Hochevar will earn $4 million next season and $5.5 million in 2016 with a $500,000 buyout, a person familiar with the terms told The Associated Press. The person spoke on condition of anonymity because the club does not release contract details.

The Royals decided to sign the former No. 1 overall draft pick to a multiyear deal in part because he is coming off Tommy John surgery that caused him to miss last season, and it is unclear just how quickly the right-hander will be back to full strength.