Santana's deal includes a $13 million club option for 2013 with a $1 million buyout. If the option is exercised, the agreement would be worth $42 million over five seasons.
The 26-year-old is the youngest active big league pitcher with at least 50 wins. He rebounded from a sub-par season in 2007 to go 16-7 with a 3.49 ERA for the AL West champion Angels last year, striking out a career-high 214 in 219 innings with only 47 walks.
Santana is 51-37 with the Angels, and expects to be a mid-rotation starter on a staff that includes John Lackey, Joe Saunders and Jered Weaver. The announcement was made on the day the team began workouts.
"I'm very happy, you guys don't even know," Santana said at a press conference with general manager Tony Reagins. "I wanted to be an Angel."
While most Major League clubs aren't spending much in the sluggish economy, Santana marked the Angels' big signing within a week. They reached a $5 million, one-year deal with free agent outfielder Bobby Abreu.
"He's performed and improved each year," Reagins said. "He stabilizes our rotation. We know that we're going to have him in this organization for years to come and it's gratifying and well-deserved."
Santana started 32 games last year. His numbers were dramatically improved from 2007, when he went 7-14 with a 5.76 ERA over 26 starts.
Santana burst onto the scene with Angels in 2005 with a 12-8 mark and a 4.65 ERA in 23 starts. He followed that with a solid 16-8 record and a 4.28 ERA in 2006.
Reagins said the Angels previously approached Santana about a long-term deal and a one-year contract to avoid arbitration.
Santana said the contract agreement had nothing to do with his decision to not play with his native Dominican Republic in the upcoming World Baseball Classic.
© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
A big vote is expected Tuesday as the Del Mar Fair Board considers transforming the Surf Side Race Place into a new indoor entertainment venue.
The North County Transit District (NCTD) has voted to lay off its enforcement officers that patrol local train and bus stations.
The North County Transit District (NCTD) has settled a high-profile lawsuit with a former employee for nearly $100,000.
Evacuation orders were lifted Monday for people affected by the Gate Fire - which is now 95 percent contained.
The group behind the proposed SoccerCity development collected enough valid petition signatures to require the San Diego City Council to either consider approving the Mission Hills project or placing it before voters, the city clerk reported Monday.
Winter weather helped bring California out of a drought, but it also created the perfect environment for a wildlife to thrive. News 8's Brandon Lewis reports on some of the species taking over the mountains in San Diego.
It was the discovery of a lifetime for two local men who stumbled across a 1920's Model T left behind in a barn.
All beaches remain close in San Clemente Monday after more than two dozen sharks were spotted swimming close to shore. It's just the latest of several sightings in recent weeks. News 8's Heather Hope reports from John Wayne Airport in Orange County.
A local non-profit is working to improve ovarian cancer survival rates by guiding patients into a new frontier.
Voters may have the opportunity to decide on the future of San Diego's hotel tax. The city council Monday discussed whether Mayor Faulconer's proposed measure should appear on the ballot in a special election in November.