Carl Pavano is finally back in the fold.

The Twins announced that they've agreed to a two-year, $16.5 million contract with Pavano.

Pavano will make $8 million in 2011 and $8.5 million in 2012, with a chance to make $500,000 more in incentives for innings pitched in 2012.

Entering the offseason, there was talk that Pavano might command a three-year, $33 million contract similar to the one 35-year-old lefthander Ted Lilly signed with the Dodgers. The Twins got Pavano for exactly half that price.

Pavano, 35, went 17-11 with a 3.75 ERA last year, pitching a team-high 221 innings.

The move gives the Twins six candidates for their five starting rotation spots: Pavano, Francisco Liriano, Scott Baker, Nick Blackburn, Kevin Slowey and Brian Duensing.

Last year, Duensing opened the year in the bullpen, posting a 1.67 ERA in 40 relief appearances. Including his 13 starts, Duensing went 10-3 with a 2.62 ERA.