Medders joined the Giants last winter after leaving the Diamondbacks as a Minor League free agent. He made the Giants as a non-roster player out of Spring Training and went 5-1 with a 3.01 ERA and one save in 61 games while earning $475,000. He is 16-7 with a 3.36 ERA in his Major League career.
The agreement leaves the Giants with three remaining arbitration-eligible players -- two-time Cy Young winner Tim Lincecum, closer Brian Wilson and starter Jonathan Sanchez.
Ken Gurnick is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.