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.

Kansas City right-hander Seth Lugo, once thought to be a prime trade candidate before Thursday's deadline, will stay with the Royals after agreeing to a two-year, $46 million contract extension, according to multiple reports on Sunday night.

The Kansas City Royals and right-hander Seth Lugo are in agreement on a multiyear extension, a league source confirmed Sunday to The Athletic’s Ken Rosenthal. When official, the move will take off the board one of the trade deadline’s most desirable potential targets.