The Toronto Blue Jays and catcher Gregg Zaun have capped a dramatic and bizarre 24 hours by agreeing in principle on a US$7.25-million, two-year contract, a source close to the talks told The Canadian Press on Tuesday.

The deal, which includes an option for a third season, was hammered out Monday, after a $5.25-million, two-year deal with free agent Rod Barajas fell apart.

All Barajas had to do was pass a physical to finalize his deal but he skipped his flight to Toronto and the move was off. Reports say he switched agents over his unhappiness with the deal, which represented a pay cut from the $3.2 million he earned in 2006.

The Blue Jays and Zaun's agent, T.R. Lewis, resumed talks around dinner time Monday and got a deal done shortly after. Only final details remain and the source said Zaun wouldn't need to take a physical.

Zaun spent Tuesday morning working out in Cincinnati, where he spends his off-season.

``I think both sides are happy,'' said the source, speaking on condition of anonymity because the deal wasn't finalized.

The deal could be announced Wednesday. The Jays planned a news conference Tuesday to unveil Frank Thomas.

The Blue Jays wanted to have their catching situation sorted out this week so they could focus on acquiring an infielder and a starting pitcher at next week's baseball winter meetings.

The catcher spot was a major void for the Blue Jays as Zaun and Bengie Molina, Toronto's tandem in 2006, both became free agents.

Zaun, 35, expected a deal to be worked out quickly with the Blue Jays, but talks stalled and they turned to Barajas instead.

Zaun batted .272 with 12 homers and 40 RBIs in 99 games last year and, as a switch-hitter, gives the Jays a badly needed second left-handed bat in the lineup.

He's expected to team with backup Jason Phillips in 2007 while prospect Curtis Thigpen develops.

Barajas batted .256 with 11 homers and 41 RBIs in 97 games last season.

© The Canadian Press, 2007