Jolly's agent, Brian Overstreet, confirmed the signing in an e-mail to The Associated Press on Tuesday. Jolly's signing was first reported on the Milwaukee Journal Sentinel's website.
Jolly had faced a Monday night deadline that would have allowed the team to lower its offer.
Jolly is facing drug charges in Houston after his July 2008 arrest outside a club allegedly for illegally possessing at least 200 grams of codeine. If convicted, Jolly faces up to 20 years in prison.