The current CBA, which has been in place since 2012, was set to expire at midnight on Dec. 1.
With the new five-year deal, baseball will now have 27 consecutive years of labor peace.
Players and owners reportedly discussed a variety of topics in the months and days leading up to the contract's expiration, leading some to believe that, at one point, a deal would not be completed by the deadline and a lockout could be put in place.
More controversial topics such as an international draft and the 26-man roster were believed to be part of the hold-up, but in the new deal, neither will be instituted.
Changes in the next CBA will include an increase in the luxury tax, which will immediately rise from $189 million in 2016 to $195 million in 2017. Under the life of the deal, the luxury tax will reach as high as $210 million.
Reforms to the qualifying offer system were also made, as well as the institution of an earlier schedule beginning in 2018 to allow for more off-days. As a result, a source told Cover Those Bases that Spring Training will be slightly cut back.