A source close to The Los Angeles Times’ Dylan Hernandez says that Ted Lilly and the Los Angeles Dodgers have agreed to terms on a new deal. Hernandez adds that the deal is pending a physical examination which is tentatively scheduled on Tuesday afternoon. The financial terms of the deal were not available.

FOXSport’s Ken Rosenthal was the first to report that the Dodgers were close to a three-year deal with Lilly. An announcement for the deal could come as early as Tuesday or Wednesday.

Last month, Lilly’s agent, Larry O’Brien of Full Circle Sports Management, was optimistic that the Dodgers and Lilly could come to an agreement. “I think the Dodgers are interested in signing Ted back. Ted has interest in signing back.”

The 34-year-old left-hander just completed a four-year, $40-million deal ($13 million for 2010). He was eligible to become a free-agent after the World Series.