Vladimir Guerrero Jr. and the Toronto Blue Jays reached an agreement on a $28.5 million contract for 2025, avoiding arbitration, according to a report from MLB.com's Mark Feinsand. The team has yet to confirm the deal.

A key figure in Toronto's lineup, Guerrero enters his final year of arbitration eligibility before reaching free agency after the season. His $28.5 million salary ranks as the third-highest in arbitration history, trailing only Juan Soto's $31.5 million in 2024 with the Yankees and Shohei Ohtani's $30 million in 2023 with the Angels.

Trade speculation and extension talks have surrounded the 25-year-old, four-time All-Star this offseason, but Guerrero Jr. seems likely to enter free agency after this season.

Vladimir Guerrero Jr. coming of an amazing season

Toronto Blue Jays third baseman Vladimir Guerrero Jr. (27) hits a single against the Tampa Bay Rays in the fifth inning at Tropicana Field.
Nathan Ray Seebeck-Imagn Images

Guerrero Jr. wrapped up last season with 30 home runs and a .323 batting average, earning him a sixth-place finish in AL MVP voting and solidifying his status as one of MLB's top hitters.

Over his career, all with the Blue Jays, he has recorded 160 home runs, 507 RBIs, and a .288 batting average. Last season, he earned his third All-Star Game starting nod.

Recent reports reveal that the Guerrero Jr. and the Blue Jays are still “more than $100 million apart” regarding a long-term extension. Although this agreement offers a temporary fix, additional discussions will be required to ensure Guerrero Jr.’s continued presence with the Blue Jays.

Last year, Guerrero Jr. and the Blue Jays faced off in an arbitration hearing, which he won, securing a $19.9 million salary—the highest ever awarded through arbitration. Salary projections for this year anticipated Guerrero Jr. could earn close to $30 million, if not surpass that figure. Considering these estimates, any long-term extension for Guerrero Jr. is expected to come at a substantial cost.

Beginning of Guerrero Jr.'s slow exit from Toronto?

Thursday marked the deadline for Toronto and Guerrero Jr. to either agree on a contract for 2025 or submit opposing arbitration figures for resolution in a hearing.

The Blue Jays managed to avoid an arbitration hearing with Vladimir Guerrero Jr. this year, finalizing a $28.5 million deal for 2025 after lengthy negotiations. However, the agreement highlights the growing uncertainty around securing a long-term extension with the young star.

For Toronto, the arbitration process offered little hope for positive outcomes regarding Guerrero Jr.'s contract. Ideally, the two sides would have reached a 2025 agreement below projections, signaling Guerrero Jr.'s camp might be open to staying beyond 2025.

Blue Jays fans can likely expect more of the same regarding a potential contract extension. While Toronto might try offering a more appealing deal, Guerrero Jr.'s public rejection of their initial proposal, combined with reports showing a $100 million gap, indicates that progress is slow. The Blue Jays may raise their offer, but closing such a significant gap anytime soon seems unlikely.

Thursday's filing deadline may mark another step in Guerrero Jr.'s gradual departure from Toronto. The only remaining question is how it will ultimately play out.