According to Joel Sherman of the New York Post and Ken Rosenthal of FOX Sports, Alvarez will earn $5.75 million in a one-year deal with the O's.
Sherman reports that the deal includes about $1.5 million in available performance bonuses.
Alvarez was non-tendered, or granted his free agency, by the Pirates earlier in the offseason. Alvarez has had trouble finding a spot where he is even adequate in the field, forcing the Pirates to let him and his big bat go.
In Baltimore, however, Alvarez may be a better fit.
The Orioles currently project to have Mark Trumbo as the designated hitter come Opening Day, but he could end up having to move to the corner outfield, where he would likely replace Henry Urrutia.
This would allow Alvarez to only use his bat, which is by far his best asset and even earned him a trip to the All-Star Game in 2013.
In 2015, Alvarez slashed .243/.318/.469 with 27 home runs and 77 RBIs in 491 plate appearances. According to FanGraphs, he was worth 0.2 Wins Above Replacement, due mostly to his horrific -26.4 UZR/150 games.
Alvarez could prove to be very valuable with the Orioles for two reasons. First, he is no longer a liability in the field. Second, he will be playing 81 games at Camden Yards, one of the most hitter-friendly ballparks in the Major Leagues.
The Orioles have had a fairly large offseason, re-resigning Chris Davis and Matt Wieters and bringing in Hyun-soo Kim, Trumbo, and Yovani Gallardo either through trade or signing.