There was some thought that Madson would accept the offer, as interest in him has been lukewarm. Not to mention the fact that there are not many teams left that are looking for a closer.
Madson, who became the de facto closer for the NL East champions due to bullpen injuries, finished 2011 at 4-2 with a 2.37 earned run average and 32 saves in 62 appearances.
The 31-year-old, who has filled virtually every role on the staff since his debut in 2003, holds a lifetime 47-30 mark, 3.59 ERA and 52 saves in 491 games (18 starts) for the Phils.
With Madson being a Type-A free agent, the Phillies will receive two picks for him as compensation.