The 31-year-old former NL home run leader will receive $1 million if makes the major league roster and can earn up to $2 million in performance bonuses. This is the third straight year Alvarez has signed with the Orioles and his second consecutive minor league deal.
Last season, Baltimore tried converting Alvarez to the outfield at Triple-A Norfolk, but the experiment was abandoned. He hit .313 with a home run and four RBIs in 14 games after a September recall.
Alvarez shared the NL lead with 36 homers for Pittsburgh in 2013. He is a .238 lifetime hitter in eight seasons with Pittsburgh and the Orioles.