The Brewers have reached agreement with Hoffman on a 1-year, $6 million free-agent contract, according to major-league sources. The deal includes $1.5 million in incentives, bringing the potential total value to $7.5 million.

Both the Brewers and Dodgers made initial one-year offers with a club option for 2010. It is not known whether the Brewers agreed to guarantee the second year.

The Dodgers were believed to be Hoffman's first choice because of the proximity of Los Angeles to his home in San Diego.

But Hoffman, 41, apparently chose the Brewers because they made a higher offer and have a clear vacancy at closer, while the Dodgers are grooming Jonathan Broxton for that role.

Hoffman, the all-time saves leader, had been with the Padres since 1993, when he was traded by the Marlins in a deal that brought Gary Sheffield to Florida.

He struggled in the first half of last season, going 1-5 with a 5.08 ERA. But he finished with 30 saves and a 3.77 ERA, his highest since 1995. His ERA has risen while his saves have declined in each of the past two years after a banner 2006 that saw him save 46 games and post a 2.14 ERA.

The Brewers lost their closer, Salomon Torres, to retirement at the start of the offseason. Three of their other relievers — Eric Gagne, Brian Shouse and Guillermo Mota — are free agents.