BOSTON — The Boston Red Sox reached agreement on one-year deals with closer Jonathan Papelbon and center fielder Jacoby Ellsbury, said two people familiar with the contracts.

The people spoke on condition of anonymity Tuesday because the deals had not been announced.

The base salaries are $12 million for Papelbon and $2.4 million for Ellsbury. They were Boston’s only arbitration-eligible players. Theo Epstein kept intact his record of never going to arbitration with a player since becoming general manager in 2002.

Papelbon is coming off his worst season with a 5-7 record, 3.90 ERA and 37 saves in 45 opportunities. He made the AL All-Star team in four of his five seasons as Boston’s closer, and has a career record of 19-18 with a 2.22 ERA and 188 saves. He will become eligible for free agency after the 2011 season.

The Red Sox signed free agent Bobby Jenks, the former closer for the Chicago White Sox who is expected to fill a setup role at least in the coming season.

Papelbon, a 30-year-old right-hander, received the highest one-year contract for an arbitration-eligible pitcher and the fourth-highest overall.

Papelbon avoided an arbitration hearing for the third straight year. He and the Red Sox agreed to one-year contracts of $6.25 million for 2009 and $9.35 million for 2010.

Ellsbury, 27, would receive an additional $50,000 for 600 plate appearances and another $50,000 for 700. His salary last season was $496,500.

ROYALS: Pitcher Gil Meche retired at age 32, walking away from a $12 million salary rather than face shoulder surgery that could have ended his season before it ever started.

Meche signed a $55 million, five-year deal with Kansas City as a free agent before the 2007 season. But he had shoulder problems last year while going 0-5 with a 5.69 ERA.

SIGNINGS, ARBITRATION: Setting himself up for an even bigger payday a year from now, Prince Fielder agreed to a $15.5 million contract with Milwaukee in the largest one-year deal for a player not yet eligible for free agency.

On a day when 67 of the 119 players who filed for salary arbitration reached agreements, AL MVP Josh Hamilton, major league home run champion Jose Bautista and Houston pitcher Wandy Rodriguez submitted the largest proposed salaries when players and teams swapped proposed figures.

Hamilton asked Texas for $12 million and was offered $8.7 million; Bautista asked Toronto for $10.5 million and was offered $7.6 million; Rodriguez asked for $10.25 million and was offered $8 million.

Those among the remaining 34 players who don’t settle will have hearings before three-person panels in the first three weeks in February.

Owners won five of the eight hearings last year, bringing their advantage to 285-210 since salary arbitration began in 1974.

Fielder’s agreement topped Mark Teixeira’s $12.5 million deal with Atlanta in 2008. Both are represented by Scott Boras, who encourages clients to test the free-agent market.

At the other end of the arbitration pay scale, the smallest difference between submitted figures was $350,000, with Texas offering Darren O’Day $1.4 million and the pitcher asking for $1.05 million.

Among free agents, the New York Yankees finalized a $35 million, three-year contract with Rafael Soriano, adding a proven closer who will become Mariano Rivera’s setup man.

Arizona agreed to one-year deals with right-hander Aaron Heilman ($2 million) and utility man Willie Bloomquist ($900,000).

The Twins avoided salary arbitration with a pair of relievers, agreeing to one-year contracts with right-hander Matt Capps for $7.15 million and left-hander Glen Perkins for $700,000.

Oakland agreed to one-year contracts with outfielders Josh Willingham and Conor Jackson, starting pitcher Dallas Braden and third baseman Kevin Kouzmanoff to avoid arbitration.

The Yankees agreed to one-year contracts with right-handers Phil Hughes and Joba Chamberlain, and left-hander Boone Logan.

Right-handed pitcher Andy Sonnanstine, who once was with the Sanford Mainers, and Tampa Bay agreed to a one-year contract worth $912,500.

The Los Angeles Angels agreed to one-year contracts with first baseman Kendry Morales, shortstop Erick Aybar, second baseman Howie Kendrick and outfielder Reggie Willits.