As Jon Heyman of FanRag Sports reported, Freese will earn a guaranteed $11 million in the new deal. There is also a team option for 2019 valued at $6 million with a $500,000 buyout.
According to Heyman, Freese can earn up to $22.5 million over three years on the contract, as the deal includes performance bonuses based on plate appearances.
The 33-year-old Freese signed a one-year, $3 million deal with the Pirates this past March after being non-tendered by the Angels in November.
Most famous for the walk-off home run in Game 6 of the 2011 World Series as a member of the Cardinals, Freese still remains a serviceable option on both sides of the ball five years later.
This season, Freese is hitting .276/.355/.437 with 12 home runs and 49 RBI in 391 plate appearances.
He has posted a 117 wRC+ this season as well as a 3.7 UZR/150 at third base and a -13.1 UZR/150 at first base. Freese has been worth 1.6 wins above replacement, per FanGraphs.
Prior to signing Freese, the Pirates have $53 million guaranteed to nine players next season with another seven players hitting arbitration. Baseball-Reference projects their 2017 payroll to be at $88.3 million, a 27 percent increase from 2016 if so.