"Stephen Strasburg is one of the premier pitching talents of this generation," Nationals president of baseball operations and general manager Mike Rizzo said in a statement. "His body of work this season and throughout his career proves that and the way he performed this postseason was nothing short of brilliant. We are looking forward to having Stephen as a part of our team for many years to come."
Terms were not officially announced, but Jeff Passan of ESPN reports the deal is worth $245 million.
That figure smashes the previous record for the most expensive deal ever given to a pitcher, previously held by David Price, who signed a seven-year, $217-million pact with the Boston Red Sox prior to the 2016 season.
It also surpasses the record for the highest average annual value of a pitcher's contract, a distinction that previously belonged to Zack Greinke. The six-year, $206.5-million deal Greinke originally signed with the Arizona Diamondbacks is worth $34.4 million per year, with Strasburg's contract averaging $35 million per season.
Additionally, the deal grants Strasburg a full no-trade clause, according to Mark Feinsand of MLB.com. It also contains about $80 million worth of deferred money that will be paid with interest, sources told Jesse Dougherty of the Washington Post.
After Strasburg helped the Nationals clinch their first championship in franchise history, the 31-year-old opted out of his contract. It would have paid the right-hander $100 million over the next four seasons. Strasburg officially became a free agent after the three-time All-Star rejected the one-year, $17.8-million qualifying offer the Nats tendered him.
"We are very excited to welcome Stephen Strasburg and his family back to the Washington Nationals," Nationals managing principal owner Mark D. Lerner said. "His tremendous talent, work ethic and leadership have been a staple of our organization since the day we selected him in the 2009 MLB Draft. We would not have won the 2019 World Series or accomplished everything we have these last 10 seasons if not for Stephen's many contributions."
Strasburg finished fifth in NL Cy Young voting last year after posting a 3.32 ERA and 3.25 FIP over 33 starts and leading the National League in wins (18) and innings pitched (209).
The Los Angeles Dodgers and New York Yankees were reportedly tied to Strasburg prior to the deal.