According to the Dallas Morning News' Evan Grant, O'Day will earn $1.251 million in 2011, having put up impressive numbers last season for Texas. That figure roughly represents the midpoint between the Rangers' $1.05 million offer and O'Day's desired sum of $1.4 million.
The 28-year-old right-hander posted a 2.03 ERA in a career-high 72 appearances last season, walking just 12 batters -- his lowest single-season total -- in 62 innings.
Sunday's agreement leaves outfielder Josh Hamilton and right-hander Frank Francisco as the Rangers' only unsigned arbitration-eligible players. Texas hasn't gone to an arbitration hearing with a player since 2000.