Gallardo, 29, went 13-11 last season for the Texas Rangers with a 3.42 ERA. He has thrown no fewer than 180 innings in each of the past seven seasons, but last year he posted a 1.42 WHIP, the highest of his career, and his 121 strikeouts were his fewest since an injury-shortened 2008 campaign with the Brewers.
With the Orioles' signing of Gallardo seen as highly likely, the team would relinquish their first-round pick, No. 14 overall, in this year's MLB draft. As a result, the team would become more open to giving up its second-round pick to sign another free agent.
Baltimore has serious interest in signing outfielder Dexter Fowler to a deal in the neighborhood of two years and $20 million, sources told Olney.
Fowler, like Gallardo, declined a qualifying offer from his team this offseason and thus will cost any team a draft pick should they sign him in free agency. Last season with theChicago Cubs, he hit .250 with 17 home runsand 102 runs scored.
How Gallardo can bolster Orioles' rotation
ESPN.com senior writer Eddie Matz talks about how close the Orioles are to signing pitcher Yovani Gallardo.