Adam Dunn hit .247 with 40 home runs and 101 RBIs last season despite a hairline fracture in his right hand. AP
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CINCINNATI (AP) -- Adam Dunn agreed to a two-year, $18.5 million deal Tuesday, three days before he and the Cincinnati Reds were scheduled for an arbitration hearing.

Dunn got salaries of $7.5 million for this season and $10.5 million for 2007. The club has an option for a $13 million salary in 2008, which it can buy out for $500,000.

The outfielder/first baseman was the Reds' last player left in arbitration. He had asked for the second-biggest salary increase among the 44 major leaguers who exchanged arbitration figures with teams.

"This is a happy day for the Reds," general manager Wayne Krivsky said by phone. "I haven't talked to Adam, but I hope he feels as good about it as we do. Hopefully it sends a nice message that he's appreciated and we're looking for big things from him."

Dunn's arbitration case was one of Krivsky's priorities when he was chosen general manager last Wednesday. He said the sides had discussed a one-year deal, but he decided to broaden the discussion to a multiyear contract.

"We had some one-year discussions. Most of those were before I came onboard," Krivsky said. "I thought the best way to get this done was the way it ended up. I felt like let's make a statement here to some extent and see if we can get a two-year deal."

Dunn sought $8.95 million in arbitration, and the club suggested $7.1 million. Dunn made $4.6 million last year, when he batted .247 with 40 homers, 101 RBIs and 114 walks. He became the only player in Reds history to have two seasons with 100 runs, walks and RBIs.

The contract agreement represented a compromise, with Dunn getting closer to the team's offer this season and the bigger raise next year.

"Hopefully there's one more [contract] at least beyond this one," Krivsky said. "We'll just have to see how it plays out. For the short term here, he's got a little security and we have a little cost certainty."

The Reds plan to move Dunn from left field to first base this season, taking over for Sean Casey, who was traded to Pittsburgh.