The deal is pending a medical review, according to Fox Sports.
Davis reportedly balked at an earlier offer by Baltimore reportedly worth around $150 million. Orioles manager Buck Showalter lamented the protracted contract talks earlier this week.
"How much is enough?" Showalter said Wednesday during a leadership conference, according to the Baltimore Sun. "I asked Chris during the season, 'Chris, when you walk into a Target store, can you buy anything you want? So, how much is enough?'
"I love Chris, but if that [his decision] makes or breaks our team, shame on us."
Davis, 29, spent parts of the last five seasons with Baltimore before filing for free agency after the 2015 season. He belted 47 home runs with 117 RBIs last year and has 126 homers over the last three seasons.