The Giants said Sanchez could earn up to $2.5 million more in performance bonuses based on starts: $250,000 each for 16 and 18 starts and $500,000 each for 20, 22, 24 and 26 games started. He has been plagued by injuries in recent years.
The 28-year-old Sanchez hasn't pitched since 2019, sitting out last year's shortened season while recovering from surgery on his pitching shoulder. He went 5-14 with a 5.89 ERA over 27 starts and 131⅓ innings playing for Toronto and Houston.
A 2016 All-Star for the Blue Jays, he made only 20 starts in 2018 and eight starts the year before because of a blister and split fingernail.
The Giants cleared room on the 40-man roster for Sanchez by designating right-hander Trevor Gott for assignment.