Two-way player Shohei Ohtani has agreed to a two-year, $8.5million contract with the Los Angeles Angels.

Ohtani, 26, and the Angels avoided arbitration after agreeing to terms on Monday.

The 2018 American League (AL) Rookie of the Year is set to enter his fourth MLB season with the Angels in 2021.

"OFFICIAL: The Angels have agreed to a two-year, $8.5million contract with Shohei Ohtani," the team wrote on Twitter.

"With the agreement, an arbitration hearing is avoided."

Ohtani is hitting .269 in his MLB career, with 47 home runs and 147 RBIs.

He is 4-3 as a pitcher in 12 starts, including an ERA of 4.39.

Ohtani pitched in just two games in 2020 after suffering a flexor strain in his right elbow, on which he underwent Tommy John surgery in 2018.