PHILADELPHIA — Reliever Ryan Madson and the Philadelphia Phillies avoided arbitration by reaching a preliminary agreement on a $12 million, three-year contract, a person familiar with the negotiations said Monday.

The person spoke to The Associated Press on the condition of anonymity because an official announcement hadn't been made.

Madson was 4-2 with a 3.05 ERA in 76 games in 2008. The right-hander played a key role in a strong bullpen, helping the Phillies win their first World Series championship since 1980. Madson finished the season as the primary setup man for closer Brad Lidge, who was 48-for-48 in save chances, including the postseason.

Madson had been eligible for salary arbitration, and would've been a free agent after this season. Five Phillies remain in arbitration: Ryan Howard, Jayson Werth, Shane Victorino, Chad Durbin and Joe Blanton.