Additionally, the Mets were close to signing first baseman Mike Jacobs to a Minor League contract on Tuesday night. Jacobs, 29, batted .228 with 19 home runs and 61 RBIs with the Royals last season after hitting 32 home runs with the Marlins in 2008.
Meanwhile, Pagan was the last of five Mets players eligible for salary arbitration to come to terms with the club, joining outfielder Jeff Francoeur, left-hander Pedro Feliciano, and right-handers Sean Green and John Maine, who all signed one-year deals earlier in the offseason.
Pagan's deal ensures that the Mets will not go to an arbitration hearing with any of their players for a second straight offseason.
Pagan, 28, batted .306 with 54 runs, six home runs, 32 RBIs and 14 stolen bases in 88 games for the Mets last season, and he is considered the favorite to start in center field while regular Carlos Beltran recovers from offseason right knee surgery. Pagan also finished fourth in the Majors with 11 triples.
The Puerto Rico native also had a 19-game hitting streak at Citi Field from Aug. 3-Sept. 18 last year. That streak also was the longest in the National League last year and was the second-longest in team history behind Edgardo Alfonzo's 22-game hitting streak at Shea Stadium in 1997.
In parts of four seasons with the Cubs and Mets, Pagan has a career batting average of .281 with 15 home runs, 84 RBIs and 115 runs in 267 games.