From the Minnesota Twins media relations department:

The Minnesota Twins announced today that they have agreed to terms with closer Joe Nathan on a contract extension through the 2011 season, with a club option for 2012. 

Nathan, 33, was 4-2, 1.88 (71.2 ip, 15 er) with 37 saves, allowing 54 hits with 19 walks and 77 strikeouts in 68 appearances last season.  He converted 37 of 41 (90%) save opportunities and ranked sixth in the American League in saves.  Nathan's 160 saves over the last four seasons (2004-07) are tied with Mariano Rivera for the most in the American League during that span.  In addition, he became the first pitcher in club history to record 36-or-more saves in four consecutive seasons.

Nathan has a career record of 43-18, 3.00 (548.2 ip, 183 er) with 161 saves, allowing 411 hits with 222 walks and 555 strikeouts.  His 160 career saves as a Twin are second on the Twins All-Time list, trailing Rick Aguilera's 254.

Dave's note: The previously reported figures for the contract evaluated the deal at $11 M per year.