MILWAUKEE -- The Brewers finalized a deal with a steady bullpen arm Thursday after right-handed reliever David Phelps passed a physical exam and signed a one-year contract that includes a club option for 2021.

Phelps will earn $1.25 million in 2020 with up to $1.9 million in performance bonuses based on appearances, a source told MLB.com's Mark Feinsand. Phelps’ 2021 club option is worth $4.5 million ($250K buyout), also with $1.9 million in performance bonuses based on appearances.

“We look at David as someone who’s not too far removed from being one of the better relievers in this game,” Brewers president of baseball operations David Stearns said. “What happened in the interim was Tommy John surgery. Now, two years removed from that Tommy John, that’s generally a pretty good spot where pitchers can begin to really get that velocity back and get back to where they were previously.”

To make room on the full 40-man roster for Phelps, right-hander Deolis Guerra was designated for assignment.

Phelps, 33, missed all of 2018 following Tommy John surgery but returned as a durable arm for the Blue Jays and Cubs in 2019, posting a 3.41 ERA and 9.4 strikeouts per nine innings in 34 1/3 innings over 41 appearances. Before the injury, Phelps pitched for the Yankees, Marlins and Mariners from 2012-17, including a stellar ’16 season in Miami in which he logged 64 appearances, a 2.28 ERA and a career-best 11.8 strikeouts per nine innings.

While he’s pitched in a number of roles in his career, the Brewers plan to use Phelps out of the bullpen.

One of his Marlins teammates was Christian Yelich, whom Phelps consulted before inking with Milwaukee. He wanted to hear about the team, the clubhouse atmosphere and the city. Yelich offered a “glowing report,” Phelps said.

“In 2019, it was a unique year for myself personally,” Phelps said. “When I finally got back on a big league mound, it had been over 600 days since I’d thrown a big league pitch. I was kind of getting my feet wet again, relearning how to pitch at the big-league level. So there was definitely an adjustment period for me.

“This offseason has been huge. It’s been my first fully healthy offseason in a number of years. My throwing progression and everything is the best it’s felt in a while, so I’m really excited to come into camp.”

Assuming he’s healthy, Phelps would provide some stability to a Brewers bullpen expecting contributions from two right-handers coming off injuries: Former All-Star closer Corey Knebel (Tommy John surgery) and Bobby Wahl (right knee surgery). Wahl is expected to be ready for the start of the season, but Knebel’s recovery will probably delay his return until May at the earliest. Other right-handers in Milwaukee’s ‘pen include Ray Black, Devin Williams, Taylor Williams and perhaps Freddy Peralta or Corbin Burnes if those two don’t begin the season as starters.

The right-handers will provide balance for the three left-handers expected to play prominent bullpen roles: Josh Hader, Brent Suter and Alex Claudio. Hader is the two-time reigning National League Reliever of the Year, Suter is coming off a sensational September in the wake of his own left elbow reconstruction, and Claudio led the Majors last season with 83 appearances, tying the Brewers’ all-time record.

Stearns on Thursday put to rest any speculation that Suter might return to the rotation. The Brewers plan to keep him in relief for the start of 2020.

“I’m just trying to be part of the equation of getting 27 outs,” Phelps said.