Ellis will receive a two-year deal that will guarantee him between $10 million to $11 million, with incentives and an option for 2011 that could bring the total value of the deal to something close to $18 million, a source told ESPN The Magazine's Buster Olney.
"I'm very excited," Ellis said by phone from his Arizona home Saturday, according to the San Francisco Chronicle. "Oakland has been a very good place for me and my family, and it's really a big relief to be back there."
Before having arthroscopic surgery to repair cartilage on his right, throwing shoulder in September, Ellis, who could have become a free agent after the World Series, had asked the A's to postpone negotiations until the team finished its season.
Ellis, 31, has spent his first seven years in the big leagues with Oakland, including 2004, when he was out with an injury to the same shoulder.
"To play in Oakland my whole career would be great," he told the Chronicle. "Not a lot of people get to do that in this game."
Ellis batted .233 with 12 home runs and 41 RBIs in 117 games for the A's this season. He stole 14 bases and committed only four errors. He last appeared in a game Aug. 30 as a pinch hitter against the Minnesota Twins.
"I know it wasn't a very good year for anyone in the organization, myself included," Ellis said. "But I'm very proud to be a part of this organization and I'm excited about things here -- not to sound like a total cheeseball, but you see what the Rays have done this year and what the Rockies did last year, and it's not out of line to think we can compete and do well soon.
"We have a lot of young pitchers on our staff, but they've got the stuff to be pretty good. Look how quickly things snowballed for Tampa Bay."
He hurt the shoulder Aug. 21 at Seattle sliding into second base to break up a double play. Ellis started the next day but came out of the game in the second inning with shoulder pain.
Ellis was expected to be fully recovered and ready for spring training.
Information from The Associated Press was used in this report.