The Orioles and Ryan O’Hearn have agreed to a one-year, $3.5 million deal for the 2024 season to avoid arbitration, a source told The Baltimore Banner. It includes a club option for 2025, which gives the Orioles a chance to lock in a salary for 2025 before he becomes a free agent.

O’Hearn was scheduled to have a hearing on Feb. 16. According to the Associated Press, O’Hearn asked for $3.8 million and the Orioles submitted at $3.2 million, so the two sides met exactly in the middle.

The Orioles have now come to terms with all 17 of their arbitration-eligible players. Only two — Austin Hays and Jacob Webb — went to a hearing, and the Orioles lost both times.

The team’s payroll is expected to increase by just over $23 million this year due to the arbitration process. The Orioles also added starting pitcher Corbin Burnes and closer Craig Kimbrel, who will be paid $15.6 million and $13 million, respectively, this season.

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O’Hearn, 30, had an unexpected breakout season last year. He was acquired last offseason for cash, but he was promptly designated for assignment to make space on the roster. After a brief stint in the majors in April, he returned in May, becoming a fixture on the team for the rest of the season.

He hit .289 with 14 home runs, filling in daily at first when Ryan Mountcastle was injured and splitting time between that spot and designated hitter when Mountcastle returned. O’Hearn can also play corner outfield.

Banner reporter Andy Kostka contributed to this story.