Rosecrans is reporting that Harang has been signed to a four-year deal, with a club option for 2011. Details at 2:00 PM, Eastern. By my math, that buys out his first two years of free agency.

UPDATE: Rosecrans is reporting that the deal is for $36.5 million (including the 5th year buyout). If you figure Harang was going to make something around $12M this year and next, through arbitration, that’s about $12M a year for his two free agent years. That’s a pretty good deal, especially if you believe that the recent inflation rate will continue.

UPDATE (by Chad): Here’s the MLB.com story. Relevant excerpt:

The Reds avoided arbitration with ace starting pitcher Aaron Harang on Tuesday when they signed him to a four-year, $36.5 million contract through the 2010 season with a club option for 2011.

Kudos to GM Wayne Krivsky on this one. Very good signing.