Torrealba will play for a $750,000 salary this season, and will receive a $500,000 buyout if the Padres and the catcher don't exercise a mutual option on him for 2011, for $3.5 million.
Torrealba, 31, hit .291 for the Colorado Rockies last season, with two homers and 31 RBIs, and had numerous hits in big spots down the stretch; with runners in scoring position, Torrealba hit .477 during the 2009 season.
Torrealba had reportedly turned down a two-year, $4.5 million offer from the Rockies earlier this offseason, and since that time, the market for him seemed to collapse.
Torrealba recently tried to engage the New York Mets in negotiations on a one-year deal for less than $2 million, but the Mets indicated that they had no interest, given financial restrictions.
He is expected to take his physical at the outset of next week.
Buster Olney is a senior writer for ESPN The Magazine.