ST. LOUIS - Free-agent righthander Pedro Martinez has signed a one-year contract with the Phillies, who will announce the signing tomorrow, a person with direct knowledge of the transaction said tonight.

Martinez, 37, underwent a physical today at Thomas Jefferson University Hospital in Philadelphia conducted by the team's medical staff. Although the Phillies would not comment tonight about the physical, several people in Martinez's camp said it went well.

According to a baseball source, the contract is worth about $1 million, and Martinez could make an additional $1.5 million in incentives based on starts and time on the active roster.

A baseball source also said Martinez could join the Phillies in Miami later this week to work out with the team before beginning a minor-league assignment.

An Internet report tonight said that Martinez had passed his physical. Phillies general manager Ruben Amaro Jr. offered only a "no comment" when asked about it. The team would be highly unlikely to announce a signing on the day of the All-Star Game, which would risk upstaging the event.

Martinez is 214-99 with a 2.91 earned run average in 17 seasons. Last year, he was 5-6 with a 5.61 ERA for the New York Mets.

"If we were to bring him in, it would not preclude us from doing other things," said Amaro, who is engaged in efforts to acquire Toronto righthander Roy Halladay, among other pitchers.

Martinez likely would need several minor-league starts before joining the Phillies.

Approached by an Inquirer reporter after the physical, the three-time Cy Young Award winner said: "We're going to talk baseball right now? Here in the street? Man. Get a stick. . . . We'll talk later. Nothing is confirmed yet, and we're still working, so take it easy. I'll talk to you guys later, OK?"

The Phillies who were at the All-Star Game expressed optimism Monday when asked about Martinez.

"I think he is going to fit in great with our club, and he's still got some bullets left," rightfielder Jayson Werth said.

Contact staff writer Andy Martino at 215-854-4874 or amartino@phillynews.com.

Staff writers Jim Salisbury and Jorge Castillo contributed to this article.