UPDATE | Machado reaches $300M deal with Padres

SAN DIEGO (AP) — All-Star infielder Manny Machado has agreed to a $300 million, 10-year deal with the rebuilding San Diego Padres, the biggest contract ever for a free agent, a person familiar with the negotiations told The Associated Press today.

The person spoke to the AP on condition of anonymity because the agreement was subject to a successful physical and had not been announced. Machado can opt out after five years and become a free agent again, the person said.

Machado's deal, if completed, would be the second-largest in baseball history behind Giancarlo Stanton's $325 million, 13-year deal signed with the Miami Marlins ahead of the 2015 season. Among free agents it tops Alex Rodriguez's $275 million, 10-year contract with the New York Yankees from 2008-17.

Records may be broken soon. Free agent outfielder Bryce Harper could top Stanton's deal in coming days or weeks.

Speaking at spring training in Peoria, Ariz., Padres executive chairman Ron Fowler said: "We do not have a deal with any free agent player. We are continuing discussions, and that's all we have to say."

Teams draw a distinction between an agreement subject to a physical and a finalized deal.

General partner Peter Seidler, however, without confirming the deal, said: "Ron and I, we love the city of San Diego, we love sports in San Diego, we're also well aware of the history. There's never been a championship. ... We as an organization, we want to completely change that. We want our franchise to win year after year after year. And we're going to do whatever we can rationally do to make that happen."

The Padres haven't had a winning season since 2010 and haven't been to the playoffs since 2006. They haven't won a playoff series since the 1998 NLCS against Atlanta.

12:54 p.m.

Manny Machado has agreed to the biggest free-agent contract in American sports history – a 10-year, $300 million deal with the San Diego Padres, league sources told ESPN's Jeff Passan today.

Machado, a four-time All-Star and two-time Gold Glove Award winner at third base, made $16 million between the Los Angeles Dodgers and Baltimore Orioles last season.

The deal with the Padres includes an opt-out after the fifth season, sources told Passan.