TORONTO -- Third baseman Josh Donaldson and the Toronto Blue Jays have agreed to a two-year deal worth US$28.65 million, the club announced on Wednesday.

The long-reported deal will see the 30-year-old Donaldson earn $11.65 million in 2016 and $17 million in 2017.

Donaldson was named American League MVP last season after hitting .297 with 41 home runs and a league-leading 123 runs batted in in his first year with the Blue Jays. He is just the second Blue Jay to earn MVP honours after George Bell in 1987.

Donaldson was also named player of the year by the Sporting News and awarded the Players Choice Award by his peers.

He was acquired by Toronto in a trade with Oakland on Nov. 28, 2014, with a package including Canadian Brett Lawrie going to the Athletics. Toronto also sent pitching prospects Kendall Graveman and Sean Nolin as well as minor league shortstop Franklin Barreto to Oakland as part of the deal.

Donaldson lost his salary arbitration case against the Blue Jays in February of 2015 after seeking $5.75 million. Instead, he was awarded Toronto's offer of $4.3 million for the 2015 season.

The addition of Donaldson and free agent catcher Russell Martin as well as mid-season acquisitions in shortstop Troy Tulowitzki and ace pitcher David Price helped transform the Blue Jays into a playoff contender.

Donaldson was instrumental in two 11-game win streaks that helped propel Toronto to its first AL East title and post-season berth since 1993, ending the longest active playoff drought in North American professional sports.

Donaldson is currently in Pebble Beach, Calif., where he will tee off Thursday morning with four-time PGA Tour winner Jason Dufner at the AT&T Pebble Beach Pro-Am.