The Boston Red Sox officially announced the signing of free agent designated hitter/first baseman David Ortiz to a two-year extension worth $26 million on Monday afternoon.

Ortiz will receive $14 million in 2013 and $11 million in 2014 in addition to a $1 million signing bonus. The 37-year-old slugger can earn an additional $4 million over the life of the contract through performance based incentives. Reports of the signing broke on Friday night, with several outlets stating that the two sides had agreed to a two-year contract. The reported agreement came hours after the club extended Ortiz a qualifying offer, which would have given them draft pick compensation had he opted to sign somewhere else.

Ortiz has spent 10-years as a member of the Red Sox and is coming off a year where he played the fewest amount of games in a season since joining the club. Despite his struggles to stay healthy, the veteran still managed to produce 23 home runs, 60 RBI and a .318 batting average through 90 games played.