According to a source close to ESPNBoston.com’s Joe McDonald reports that Kevin Gregg and the Baltimore Orioles are close to signing a two-year, $12 million deal.

Jeff Zrebiec of The Baltimore Sun was the first to report the possibility of a deal last week. Zrebiec said at the time the Orioles had made a two-year offer worth between $8 to $10 million Gregg at the weeks Winter Meetings.

Besides the Orioles, the Los Angeles Angels, Toronto Blue Jays, Tampa Bay Rays and other teams have expressed interest in Gregg.

The 32-year-old right-hander was 2-6 with 37 saves and a 3.51 ERA in 63 appearances last season with the Toronto Blue Jays. Gregg was paid $2.75 million this season. Gregg had team options for 2011 and 2012 (worth $4.5 million and $4.25 million respectively), but the Jays declined both options early in November.