The 30-year-old right-hander was 6-9 with a 5.19 ERA last season. He had a career-high 76 appearances and was tied with former Angels closer Francisco Rodriguez for the most in the American League.
Guerrier was Minnesota's last player remaining in arbitration. He asked for a raise from $950,000 to $1.75 million, the Twins offered $1.2 million and the sides split the difference.
Steady and reliable through the first four months of the season, Guerrier had a 10.13 ERA in 13 games in August and a 10.00 ERA in 12 games in September.