Free agent left-hander Wandy Peralta is in agreement with the San Diego Padres on a four-year, $16.5 million contract, sources confirmed to ESPN on Wednesday.

The deal includes three player opt-outs, sources told ESPN, confirming multiple reports.

The deal is pending a physical.

Peralta, 32, found success with the New York Yankees over the past three seasons, which included a stellar 2023 campaign. He gave up just 36 hits over 54 innings in 63 games while compiling a 2.83 ERA. Additionally, just five of 28 inherited runners scored when he came into the game, matching the best percentage of his career, 18%, which he achieved in 2021 as well.

Peralta features a changeup he'll throw to both sides of the plate. Batters hit just .185 off that pitch last season. With former Padres closer Josh Hader now on the Houston Astros, Peralta fills a need as a lefty out of the pen for San Diego. He'll join newcomer Yuki Matsui in that role as the Padres have revamped much of their pitching staff under new manager Mike Shildt.

Peralta has a career 3.88 ERA over eight big league seasons, although much of his success has come over the past few years as his slider and sinker became more prominent to go along with his changeup. In fact, he hasn't given up a home run off his sinker since 2019, undoubtedly helping earn the veteran a multiyear deal with the Padres.

ESPN's Alden Gonzalez contributed to this report.