Terms were not disclosed but the San Francisco Chronicle said on its website (http://www.sfgate.com) the right-hander would earn $23 million over two years.
Lincecum, 25, had filed for $13 million this season through the arbitration process and the Giants had countered with $8 million.
The pitcher posted a 15-7 record with a 2.48 earned run average last year. He is 40-17 in three years with the Giants.
(Reporting by Gene Cherry in Salvo, North Carolina, editing by Tony Jimenez)