BALTIMORE (AP) _ The Baltimore Orioles avoided salary arbitration and agreed to an $850,000, one-year contract with pitcher Jesse Orosco/

Orosco, 38, compiled a 3-1 record with a 3.40 ERA in 66 games last season. In 55 2-3 innings, the left-hander allowed 42 hits with 28 walks and 52 strikeouts.

He gets an $800,000 next season and the Orioles have an $800,000 option for 1998 with a $50,000 buyout. The option would become guaranteed if he pitches in 55 games next season.

If Baltimore exercises the option for 1998, the Orioles also would get an option for 1999 at $800,000 with a $50,000 buyout.

Orosco can earn $300,000 per season in performance bonuses under the deal, which was announced late Tuesday.