UPDATE: Mariners, Brendan Ryan still working on contract

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UPDATE: According to Greg Johns of MLB.com, the Mariners and Brendan Ryan have not officially agreed to a new contract, though a deal is believed to be close.

3:45 PM: Three weeks after acquiring Brendan Ryan from the Cardinals for pitching prospect Maikel Cleto the Mariners have avoided arbitration with the infielder by agreeing to a two-year, $2.75 million deal, according to the Associated Press.

Ryan will reportedly earn $1 million this season and $1.75 million in 2012.

He fell out of favor in St. Louis last season by hitting just .223 with a measly .573 OPS and clashing with manager Tony LaRussa, but Ryan is among the elite defensive middle infielders in all of baseball and the Mariners will hope his hitting can bounce back to his .279/.333/.373 line prior to 2010.

Dodgers designate Sergio Romo for assignment

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The Dodgers announced on Thursday that the club activated pitcher Grant Dayton from the 10-day disabled list and designated pitcher Sergio Romo for assignment.

Dayton, 29, went on the disabled list earlier this month with neck stiffness. He’ll resume with a 3.63 ERA and a 20/12 K/BB ratio in 22 1/3 innings.

Romo, 34, signed a one-year, $3 million deal with the Dodgers in February. It didn’t really work out, as the right-hander posted a 6.12 ERA with a 31/12 K/BB ratio in 25 innings. His peripherals are still decent, so it wouldn’t be surprising if a team in need of a bullpen arm makes a deal with the Dodgers within the week.

Nate Karns underwent season-ending surgery for thoracic outlet syndrome

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MLB.com’s Jeffrey Flanagan reports that Royals pitcher Nate Karns underwent surgery for thoracic outlet syndrome on Wednesday. He’s expected to be ready for spring training next year. Karns went on the disabled list in May with an elbow injury and didn’t make much progress.

The Royals acquired Karns from the Mariners in January in exchange for outfielder Jarrod Dyson. Over eight starts and one relief appearance, the 29-year-old right-hander compiled a 4.17 ERA and a 51/13 K/BB ratio in 45 1/3 innings.

Karns will enter his first of three years of arbitration eligibility after the season, so he’ll be under the Royals’ control through 2020.