The Kansas City Royals have agreed to a two-year extension with right-hander Seth Lugo, according to a person familiar with the negotiations.

On Sunday evening, a source confirmed the Royals are finalizing a contract extension with All-Star pitcher Seth Lugo. ESPN insider Jeff Passan was first to report the news. The terms of the deal have not been disclosed, but MLB insider John Heyman reported the extension is worth $46 million, with a vesting option for the 2028 season.

According to a report from ESPN's Jeff Passan, the Royals and Lugo are in the process of finalizing a multi-year extension. He's off the market at the trade deadline, and the Royals have locked in a formidable top of the rotation with Lugo, Cole Ragans, Kris Bubic, and Michael Wacha for 2026.