KANSAS CITY, Mo. — The Kansas City Royals and right-hander Seth Lugo have agreed to a two-year extension that includes a vesting option for the 2028 season, a person familiar with the negotiations told The Associated Press on Sunday night.

The person spoke on condition of anonymity because the deal, which presumably takes one of the most talked-about names on the trade market off the table ahead of this week’s deadline, had not been officially announced.

The 35-year-old Lugo made his first All-Star Game and won his first Gold Glove last season, when he went 16-9 with a 3.00 ERA in the first year of a two-year, $30-million deal that included a player option for next season. Lugo has followed that up with an even better start to this season, going 7-5 with a 2.95 ERA through 19 outings for Kansas City.

Rumours surfaced of several contenders interested in trading for Lugo ahead of Thursday’s deadline, and the fact that the Royals have been hanging on the fringe of contention themselves left many wondering whether they would be buyers or sellers.

It appears that they are going to make a push for a second consecutive playoff appearance.

The Royals acquired outfielder Randal Grichuk from the Diamondbacks for reliever Andrew Hoffmann late Saturday, shoring up a weakness in the lineup by adding a right-handed bat. Now, they have indicated that Lugo remains big a part of their future with his extension — an especially timely one given it came the same day that all-star pitcher Kris Bubic went on the injured list.

Kansas City also is missing starters Cole Ragans and Michael Lorenzen due to injuries. Both are expected back at some point in August, and the Royals are hopeful that their return to the rotation will propel them down the stretch run.

After beating the Guardians on Sunday, the Royals were four games back of the final American League wild-card spot.