Padres avoided arbitration with LHP Joe Thatcher by agreeing to a one-year, $1.35 million contract.

It was Thatcher's second year of arbitration eligibility. When healthy, the southpaw has been terrific for the Padres since 2009, posting a 2.66 ERA, 1.18 WHIP and 10.9 K/9 rate. He's coming off of arthroscopic surgery on his right knee but is expected to be fine for spring training.

Joe Thatcher (knee) is expected to be activated from the disabled list Friday.

Thatcher began a rehab assignment with High-A Lake Elsinore Wednesday, and if he gets through that appearance OK, he'll be activated for the series against the Rockies. He might still require offseason knee surgery.

Joe Thatcher (knee) is scheduled to throw a bullpen session Wednesday.

Thatcher has been sidelined since late July with tendinitis in his right knee. He'll need surgery on the knee eventually but is hoping to return later this season and delay the operation until the offseason.