The Texas Rangers have avoided arbitration with 2010 MVP Josh Hamilton by agreeing to a two-year deal according to Evan P. Grant of the Dallas Morning News.

Jon Heyman of Sports Illustrated adds that the deal is for $24 million – an average annual salary of $12 million per season, so it’s right on target with Hamilton’s arbitration requirements for 2011.  However, given that he would have likely earned more in 2012 (maybe $13-15 million via arbitration), the deal favors Texas.

Hamilton will receive a $3 million signing bonus (payable in two installments of $1.5 million each), $7.25 million in 2011 and $13.75 million in 2012 according to Grant.

Last week, we learned that the Rangers were approaching Hamilton with a two-year deal, but it appeared he was going to an arbitration hearing.

Hamilton submitted $12 million while the Rangers submitted $8.7 million when salary figures were due a few weeks ago.  The AL MVP’s new deal buys out his remaining arbitration-eligible years, and he’ll be eligible for free agency after the contract expires in the winter of 2012.