CHICAGO (CBS) — The White Sox have signed starting pitcher Jake Peavy to a two-year, $29 million contract extension.

According to the team’s Twitter page, Peavy will receive $14.5 million in 2013 and 2014. If he reaches unspecified thresholds both years, he could earn a $15 million extension for the 2015 season.

“I’m really excited to come back to Chicago and build on what we did last year,” Peavy said.

Peavy was 11-12 last year, with a 3.37 ERA, but was plagued by low run support in several of his starts.

“Jake Peavy showed again last season why he is capable of being one of the top pitchers in the American League,” general manager Rick Hahn said.

In more than three years with the Sox, Peavy went 28-25, with a 3.95 ERA, and 400 strikeouts in 71 games.

In addition to re-signing Peavy, the White Sox picked up the 2013 option year for starting pitcher Gavin Floyd, who will be paid $9.5 million next year.

The White Sox also declined the $13 million option for third baseman Kevin Youkilis, exercising a $1 million buyout. The Sox also declined the $10 million 2013 option for reliever Brett Myers, opting for a $3 million buyout.

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