The Cincinnati Reds and right-hander Homer Bailey agreed on a six-year, $105 million contract Wednesday, according to reports.

The deal includes a mutual option for a seventh year, MLB.com reported Wednesday, and keeps Bailey from becoming a free agent after the 2014 season.

Bailey and the Reds were scheduled for an arbitration hearing on Thursday. Bailey asked for $11.6 million and the Reds countered with a $8.7 million offer. The two sides also avoided arbitration last year when Bailey signed a one-year, $5.35 million contract.

"There's a lot of things we have in place," Bailey said Monday. "I feel the majority of it is worked out. It's just the little details and stuff like that."

The 27-year-old Bailey has compiled a 49-45 record with a 4.25 ERA in seven seasons with the Reds. He is the third pitcher in team history with two no-hitters. He threw his second no-no last year and set career highs for innings pitched with 209 and strikeouts with 199 while posting an 11-12 record with a 3.49 ERA in 33 starts.