Alvarado agreed to a one-year, $3.45 million contract with the Phillies on Friday to avoid arbitration.
The two sides met at the midpoint of the figures they exchanged last month, Daniel Alvarez-Montes of ElExtraBase.com reports. Alvarado was actually optioned to the minors by the Phillies after a rough start to last season but was dominant after returning with a 1.66 ERA and 64:14 K:BB over 38 innings covering his last 42 appearances.