SAN FRANCISCO — Left-hander Derek Holland is staying with the San Francisco Giants, agreeing to a one-year contract that guarantees $7 million.

Holland has a $6.5 million salary as part of the deal announced Monday, and the Giants have a $7 million option for 2020 with a $500,000 buyout. The option price can escalate based on starts this year, by $500,000 each for 24 and 28, and by $1 million for 32.

The 32-year-old was 7-9 with a 3.57 ERA in 30 starts and six relief appearances over 171 1/3 innings in his first season for San Francisco. He dropped his ERA from 6.20 with the White Sox the previous year, the second best improvement by major league pitchers, according to STATS.

Holland, who spent the first eight of his 10 big league seasons with Texas, helped fill a void in the rotation when the Giants dealt with injuries Madison Bumgarner, Johnny Cueto and Jeff Samardzija.