Loaiza, a two-time All-Star, had made only two starts after missing the first 4½ months of the season because of three different injuries. He allowed just three earned runs in 14 2-3 innings in the two starts and gives the Dodgers depleted rotation a boost for the stretch run.

Los Angeles signed David Wells last week as general manager Ned Colletti tries to overcome injuries to Jason Schmidt, Randy Wolf and Hong-Chih Kuo and ineffectiveness by Brett Tomko and Mark Hendrickson.

"At this time of the year, we're looking for any way to improve the team and Esteban is a talented veteran who we hope can contribute down the stretch and next season," Colletti said. "He has a history of winning games and right now that's what's most important to our team."

The Dodgers assume the $1.08 million Loaiza is owed for the rest of this season, as well as his $7 million salary for 2008. Loaiza, 35, also has a $7.5 million club option for 2009 with a $375,000 buyout.

Loaiza has a 124-108 career record and 4.60 ERA in 362 career games for the Pirates, Rangers, Blue Jays, White Sox, Yankees, Nationals and Athletics.

To make room for Loaiza on the 40-man roster, the Dodgers transferred outfielder Jason Repko to the 60-day disabled list.