7:32pm: Evan Grant of The Dallas Morning News says the deal is in fact worth $5MM with some performance bonuses.
6:49pm: The Rangers have reached an agreement with Vladimir Guerrero, reports MLB.com's T.R. Sullivan. It's a one-year deal with an option for 2011. Earlier this week, SI.com's Jon Heyman reported that the two sides were in "serious talks" about a deal that was worth $5MM with incentives.
Guerrero, 35 in February, is a career .321/.386/.568 hitter, though he's tailed off in recent years and had the least productive full season of his career in 2009. Vlad has hit .394/.471/.705 in over 220 plate appearances at the Ballpark in Arlington, which should certainly boost his overall numbers. He'll serve as the club's primary designated hitter.