Lugo and the Royals are finalizing a multi-year contract extension, Jeff Passan of ESPN.com reports.

EDGE Analysis

Lugo was rumored to be a potential trade candidate ahead of Thursday's deadline, but that is now off the table. The right-hander is in his second season with Kansas City, posting a 2.95 ERA and 1.09 WHIP with 99 strikeouts over 113 innings in 19 starts. He's now all set to make his regularly scheduled start Tuesday in Atlanta with no concerns of being in a new uniform thereafter.