PEORIA, Ariz. — Felix Hernandez and the Seattle Mariners have reached agreement on a $175 million, seven-year contract that will make him the highest-paid pitcher in baseball.

The Mariners announced the sides had reached agreement on the deal Tuesday afternoon. Hernandez and general manager Jack Zduriencik will hold a news conference in Seattle this afternoon, where Hernandez is expected to sign the contract.

Earlier Tuesday, Zduriencik said the sides were having significant talks to try to finalize a new contract for the three-time All-Star and 2010 AL Cy Young Award winner. There had been speculation and reports about an injury to Hernandez’s pitching elbow that could be slowing the negotiations. Zduriencik said earlier in the day that a deal of that magnitude in years and dollars, “takes time to work things out.”

A-Rod staying in N.Y.

Alex Rodriguez will not report to spring training with the Yankees’ position players and will work on his rehabilitation from hip surgery in New York.

The third baseman is expected to be sidelined until at least the All-Star break following the Jan. 16 operation.

Says manager Joe Girardi: “There’s not a lot that he can do here.”

The Miami New Times last month published records that allege Rodriguez purchased performance-enhancing substances in recent years from Biogenesis of America LLC, a now-closed clinic in Coral Cables, near Rodriguez’s offseason home.

Rodriguez has denied the allegations. Major League Baseball is investigating the matter.

Reds, Latos agree

Right-hander Mat Latos has agreed to an $11.5 million, two-year contract with the Cincinnati Reds, avoiding what would have been baseball’s first salary arbitration hearing of the year.