The Reds and right-hander Jose Arredondo have agreed to a two-year contract to avoid arbitration, the club announced Thursday.
The club and Arredondo were not far apart when salary figures were exchanged last week. Arredondo was seeking $875,000 for 2012 while the Reds countered offered at $725,000. He made $480,000 last season.
Arredondo was Cincinnati's last remaining arbitration-eligible player.
Cincinnati's record of no arbitration cases extended for another year. It has not had a case go to a hearing since 2004, when the arbitrator ruled against reliever Chris Reitsma.
Arredondo, who turns 28 in March, went 4-4 with a 3.23 ERA in 53 relief appearances for the Reds last season after missing all of 2010 while recovering from Tommy John surgery.
Arredondo has posted a 3.40 ERA in 148 games during his three-year career, beginning with the Angels from 2008-09.
Cash Kruth is a reporter for MLB.com. Follow him on Twitter at @cashkruth. This story was not subject to the approval of Major League Baseball or its clubs.