Per Dylan Hernandez of the Los Angeles Times:
Source: Ted Lilly has agreed to terms of a new deal with the #Dodgers. Physical scheduled for next week.
This was an expected move, as the Dodgers and Lilly have expressed a willingness to continue their relationship pretty much ever since the Dodgers acquired Lilly on July 31 from the Cubs.
The tweet by Hernandez followed an earlier report from Ken Rosenthal of Fox Sports:
Source: #Dodgers, Lilly close on 3-year contract. Announcement could come as soon as Tuesday or Wednesday of next week.
Lilly, who was acquired with second baseman Ryan Theriot and $2.5 million from the Cubs for Blake DeWitt, Brett Wallach, and Kyle Smit, went 7-4 with a 3.52 ERA in 12 starts with the Dodgers. Last year was the final season of a four-year, $40 million contract that Lilly signed with the Cubs before the 2007 season.