Updated

MIAMI (Reuters) - The Tampa Bay Rays have signed Australian Grant Balfour to a one-year deal to avoid arbitration with the veteran reliever, the team said on Sunday.

The contract is worth $2.05 million for the 31-year-old right-hander, Major League Baseball reported on its website (www.mlb.com).

Balfour went 5-4 with a 4.81 earned run average in his second season with the Rays in 2009.

(Reporting by Gene Cherry in Salvo, North Carolina. Editing by Ian Ransom)