Estes would receive $550,000 if added to the Dodgers' 40-man roster, and would be able to earn an additional $1 million in performance bonuses bases on starts, from five to 30. Los Angeles has not yet announced the agreement.
The 35-year-old left-hander had a 2-3 record with a 4.74 ERA in nine games for the San Diego Padres last season. He has a 101-93 record with a 4.71 ERA with San Francisco, the New York Mets, Cincinnati, the Chicago Cubs, Colorado, Arizona and San Diego.
Estes made his major league debut with the Giants in 1995, and had his best season two years later, going 19-5 with a 3.18 ERA. He also won 15 games with the Giants in 2000 and the Rockies in 2004.