"Ramon was a perfect fit for our club because he provides good leadership, good defense, handles a staff well, and will give us a good offense, and in our park, we think he'll have a very good year," Reds General Manager Walt Jocketty said.

The deal hinged on the Orioles picking up a portion of the $9 million they owe Hernandez. Because the Reds are to receive $1 million from the Orioles, the deal had to be approved by the commissioner's office.

The prospects headed to Baltimore are infielders Brandon Waring and Justin Turner. Waring, a third baseman, hit .270 with 20 homers and 71 RBIs last season for the Class A Dayton Dragons. Turner, a second baseman, played at Class AA Chattanooga last season.

Hernandez will make $8 million in 2009, and there is a club option for $8.5 million in 2010, with a $1 million buyout. He was expendable with top prospect Matt Wieters ready to take over.

Freel figures to resume his utility role and platoon in left field. He will make $4 million this year, so with the $1 million in cash and Hernandez's $9 million, the Reds invested $4 million.

Hernandez, 32, hit .257 with 15 homers and 65 RBIs last season. He is a native and resident of Venezuela, originally signed as a nondrafted free agent by the Oakland A's in 1994. In 2006, he hit 23 homers and drove in 91 runs for the Orioles.

Freel, 33, was jammed up by injuries most of his six years with the Reds, playing only 75 games in 2007 and 48 games last season. The fan favorite did not play after June 3, eventually undergoing right hamstring surgery.

"A piece of me feels excitement and a piece of me is upset about the relationship I've had with Cincinnati," Freel said. "It's tough. I'm torn."

The Reds reportedly are one of three teams trying to sign free agent left-handed relief pitcher Arthur Rhodes, who is expected to make his decision this week.