The deal is worth $2.5 million in guaranteed money, Adam McCalvy of MLB.com reports. Suter will earn $900,000 in 2020 and $1.5 million in 2021, while also receiving a $100,000 signing bonus.
Suter can also increase his 2021 salary through a series of escalator clauses based on innings pitched in 2020, according to McCalvy. The clauses, each worth $50,000, will be triggered separately when he pitches 80, 100, 120, 140, and 160 innings.
The agreement covers Suter's first two years of arbitration eligibility. As a Super Two player, he won't become a free agent until after the 2023 season.
The 30-year-old missed most of the 2019 season following Tommy John surgery, but he returned in September to post a 0.49 ERA in nine relief appearances. He also threw a scoreless inning in the team's NL wild-card game loss.
Before last season, Suter had worked as both a starter and reliever for the Brewers. In 2018, he posted a 4.44 ERA and 1.19 WHIP with 84 strikeouts and just 19 walks across 20 appearances (18 starts) before suffering his elbow injury.
Suter's arbitration hearing had been scheduled for Sunday, according to Tom Haudricourt of the Milwaukee Journal Sentinel.