Per the AP:

KANSAS CITY, Mo. -- Right-hander Zack Greinke and the Kansas City Royals agreed Monday to a $38 million, four-year contract that avoided a salary arbitration hearing next month.

Greinke went 13-10 with a 3.47 ERA in 32 starts for Kansas City last season, setting career highs in strikeouts (183) and innings (202 1/3). His 3.47 ERA was the best by a Royals starter in 11 years.

After earning $1,475,000 last season, Greinke had asked for $4.4 million when he exchanged proposed arbitration salaries with the Royals last week. The team offered $3.4 million.

He gets $3.75 million this year, $7.25 million in 2010, and $13.5 million in each of the final two seasons.

Greinke would have been eligible for free agency after the 2010 season.