BOSTON – The Boston Red Sox are keeping their captain.

A person familiar with the negotiations said catcher Jason Varitek reached a preliminary agreement with Boston on a $2 million, one-year contract. The person spoke on condition of anonymity Thursday because the deal is pending a physical and no announcement had been made.

Varitek, 38, has spent his entire major league career with the Red Sox after making his debut in 1997. He batted .232 with seven home runs and 16 RBI in a backup role last season, when injuries helped limit him to 39 games.

Varitek backed up All-Star Victor Martinez, who became a free agent in the offseason and agreed to a $50 million, four-year contract with Detroit.

Varitek can earn another $300,000 in performance bonuses: $100,000 each for 60, 70 and 80 games started at catcher.

YANKEES: New York increased its contract offer to Derek Jeter, a person familiar with the negotiations said on condition of anonymity because no announcement was made.

New York opened with a $45 million, three-year offer last month, then awaited a formal proposal from Jeter. It was not known whether the new offer improved the value, contract length or both.

WHITE SOX: First baseman Adam Dunn agreed to a four-year, $56 million contract, a person familiar with the negotiations said on condition of anonymity because the deal has not been announced.

Dunn, 31, hit .260 with 38 home runs and 103 RBI for Washington last season.

The White Sox declined to offer a contract to closer Bobby Jenks but exercised a club option on shortstop Alexei Ramirez for next season.

Chicago also chose not to give a contract to lefty reliever Erick Threats.

BRAVES: Atlanta agreed to a one-year contract worth $1.45 million with Eric Hinske and decided not to offer a contract to outfielder Matt Diaz, who becomes a free agent.

GIANTS: Pat Burrell agreed to terms on a one-year contract.

Burrell, 34, signed a minor league deal with the Giants on May 29 after his release by Tampa Bay and joined the team on June 4, hitting .266 with 18 home runs and 51 RBI.

TWINS: Minnesota agreed to one-year deals with outfielder Jason Repko and right-hander Pat Neshek and offered contracts to 26 others, including shortstop J.J. Hardy and lefty Francisco Liriano.

ANGELS: Los Angeles agreed to a two-year deal with left-hander Hisanori Takahashi, who appeared in 53 games last season with the New York Mets in his first season in the majors. He went 10-6 with eight saves and a 3.61 ERA.

ATHLETICS: Oakland is not offering contracts to designated hitter Jack Cust, outfielder Travis Buck and third baseman Edwin Encarnacion, making them all free agents.

MARINERS: Oft-injured lefty Erik Bedard agreed to a one-year contract with Seattle. Bedard hasn’t pitched in a major league game since the middle of the 2009 season.

CUBS: Chicago reached a $1,175,000, one-year deal with utilityman infielder Jeff Baker, avoiding salary arbitration.

MARLINS: Right-hander Burke Badenhop agreed to a one-year deal with Florida after going 2-5 with a 3.99 ERA in 672/3 innings last season with the Marlins.

BLUE JAYS: Right-hander Dustin McGowan agreed to a one-year contract worth $450,000 with Toronto.

ORIOLES: Baltimore declined to make a contract offer to right-hander Matt Albers, who became a free agent.