The deal will pay the left-handed set-up man close to $7.5 million.
"I pretty much let everyone know before I left there that I
wanted to come back. It's a good situation for me and my family,"
said Grabow, who has a house in Arizona, where the Cubs
conduct spring training.
Grabow, 31, combined to go 3-0 with a 3.36 earned-run average last season in a career-high 75 relief appearances with the Pittsburgh Pirates and Cubs.
Grabow's 72 2/3 innings of work in 2009, tied for third-most among left-handed relievers, and his career-high 23 holds ranked ninth among National League pitchers.
Bruce Levine covers baseball for ESPNChicago.com. Information from The Associated Press was used in this report.