Seth Lugo is staying in Kansas City.

According to a Sunday night report from ESPN MLB insider Jeff Passan, the Royals are finalizing a multi-year extension with Lugo to keep him with the team. He was set to become a free agent after the season, with a player option on the final year of his current deal for next year.

Due to the upcoming free agency, Lugo heard his name in trade rumors ahead of Major League Baseball's July 31 trade deadline, but now inks a deal to stay put as the Royals stand four games behind the American League's final wild card. Kansas City has won five of their last seven games as they aim to make a late-season push.

On the year, the 35-year-old righthander has a 7-5 record in 19 starts with a 2.95 ERA and 99 strikeouts. He made his first All-Star appearance last season and finished second in AL Cy Young Award voting to Detroit Tigers ace Tarik Skubal. In 2024, Lugo posted a 16-9 record with a 3.00 ERA and 181 strikeouts in 206 1/3 innings while winning his first Gold Glove.

Per MLB insider Jon Heyman of the , Lugo's extension with the Royals is expected to be for two years for about $46 million plus a vesting option.