Additionally, the Rays will pay a $2.4-million posting fee to the Yokohama DeNA BayStars of Japan's Central League, reports Marc Topkin of the Tampa Bay Times, who added that the deal is still pending a physical and likely won't be announced until next week.
Tsutsugo, who was also drawing interest from the Chicago White Sox, Detroit Tigers, and Toronto Blue Jays, had bigger offers on the table but decided the Rays were his best fit, a source told MLB.com's Mark Feinsand.
Tampa Bay was impressed with Tsutsugo after seeing him during a workout in San Diego, Topkin noted.
The 28-year-old Tsutsugo is a left-handed hitter who's drawn comparisons to Kyle Schwarber of the Chicago Cubs, Sherman added. He'll slot into a Rays lineup that also features power hitters Austin Meadows and Hunter Renfroe.
Tsutsugo spent the past ten seasons with the BayStars, batting .284/.382/.525 with 205 home runs and 615 RBIs in 978 games.