In only two years, Sanchez has gone from being a utility infielder to an NL batting champion and a two-time All-Star. He was rewarded today with an $11 million, two-year contract that includes a 2010 option that could make the deal worth $18.4 million.

"That first year of free agency is big for us," general manager Neal Huntington said. "It's not a drastically undervalued free agency year, but it is one that gives us cost certainty if Freddy continues to go out and exceed expectations and perform at a high level."

The contract allowed the 2006 NL batting champion to avoid an arbitration hearing. Sanchez, who made $2.75 million last season, sought $4.9 million and the team offered $4.1 million.

The 30-year-old Sanchez didn't become an everyday player until a month into the 2006 season but went on to win the batting title with a .344 average. It was the highest average by a Pirates regular since Roberto Clemente hit .345 in 1969.

Sanchez also drove in 85 runs despite hitting only six homers.

"A few years ago I was a utility guy, coming off the bench," Sanchez said. "To have the commitment that they want me here is very encouraging."

Sanchez started slowly last season after a knee injury forced him to miss nearly all the Pirates' exhibition schedule, and he ended April with a .224 average. He bounced back to finish with a .304 average, 11 homers and 81 RBIs in 147 games, despite needing shoulder surgery the final week of the season.

Sanchez insisted he wanted to stay in Pittsburgh, even though the Pirates are coming off 15 consecutive losing seasons — one short of the major league record. They have virtually the same roster as a year ago, when they lost 94 games. They lost 95 games each in 2005 and 2006.

"I was here for the losing and I want to be here for the winning now," he said.

Sanchez said he's not disappointed, as teammate Jason Bay is, that the Pirates made no offseason moves of consequence.

"We have the same exact team we had last year, and that team was assembled to compete and contend," said Sanchez, a former Red Sox farmhand who was dealt to Pittsburgh during the 2004 season. "I think a lot of us underachieved and, me personally, I'm not going to let that happen again. I think definitely we're going to play better the next few years. If I didn't see us winning in the future, this isn't something that would have gotten done."

Sanchez gets a $300,000 signing bonus, $4 million this year and $6.1 million in 2009. The deal includes an $8 million option for 2010 with a $600,000 buyout.

The option becomes guaranteed if he has 635 plate appearances in 2009 or is selected for the All-Star game and has 600 plate appearances. The option can increase by up to $500,000: $100,000 each for 650 plate appearances in each of the next two years, $100,000 for making the All-Star game in each of the next two years and $100,000 for winning a Gold Glove or Silver Slugger.

While a team such as the Yankees, Red Sox or Dodgers wouldn't have blinked at paying Sanchez's deal, Huntington called it is a major commitment. The Pirates' $51 million payroll last season was the majors' fourth lowest.

Sanchez is expected to be the Pirates' fifth highest-paid player this season, trailing only right-hander Matt Morris ($9.75 million), Wilson ($6.5 million), Bay ($5.75 million) and first baseman Adam LaRoche ($5 million). Sanchez made $2.75 million last season. Sanchez and Wilson are former American Legion teammates from the Los Angeles area.

"Part of our strategy is to try to find the players that are the reliable people, the quality people, that are willing to sacrifice a little bit of their pure financial upside for some security," Huntington said. "At the same time, we take significant risk and significant exposure from a financial standpoint, but we feel like we're getting enough back on the other end. In this case, it's the ability to get Freddy's first year of free agency."

Sanchez is the first Pirates infielder to hit .300 in consecutive seasons since third baseman Bill Madlock in 1982-83, based on a minimum of 450 plate appearances. Sanchez was a third baseman in 2006.