Rodriguez reached an agreement Thursday on a two-year contract to return to Milwaukee, a source familiar with the negotiations told ESPN's Buster Olney.
The deal is worth a total of $13 million, a person familiar with the agreement told The Associated Press.
The 32-year-old closer had 44 saves for the Brewers last season, his most since 2008, when he set a major league record by saving a career-best 62 games for the Los Angeles Angels. In all, he has saved at least 40 games five times in his 13-season career.
Rodriguez solidifies a bullpen in which presumed closer Jonathan Broxton figures to move back into a setup role to make room for Rodriguez, who has 348 career saves.
The Milwaukee Journal-Sentinel first reported terms of the deal.
Rodriguez gave up 14 homers last season. He went 5-5 with a 3.04 ERA, with 73 strikeouts in 68 innings.
The Brewers welcomed the veteran closer back to the clubhouse.
"His personality fits really well on the team," outfielder Ryan Braun said. "He's been really successful, and anybody that has that type of success is a lot of fun to be around."
The Brewers had discussions with the Phillies this offseason about acquiring closer Jonathan Papelbon, but a deal did not materialize.
Left-hander Will Smith and right-hander Jeremy Jeffress also figure to provide power arms out of the bullpen to help set up Rodriguez.
As a member of the Angels, where he earned the nickname "K-Rod" for his starring role in the bullpen during the Angels' 2002 championship run, Rodriguez led the AL in saves three times, also accomplishing the feat in 2005 and 2006 when he saved 45 and 47 games, respectively.
In 2008 he signed a three-year, $37 million contract with the New York Mets, but he wasn't able to duplicate his success with the Angels. He saved 35 games in 2009, but in 2010, his season was marred by an August incident in the Mets' clubhouse when he was charged with third-degree assault after an altercation with his father-in-law. He tore a thumb ligament during the incident, requiring season-ending surgery. During the 2011 season, the Mets traded Rodriguez to the Brewers.
Rodriguez's 348 career saves puts him 10th on the all-time saves list. He has a 2.73 ERA in 799 games with the Angels, Mets, Brewers and Baltimore Orioles, who acquired him in an in-season trade with Milwaukee in 2013.
He was paid $3.25 million in 2014 on the one-year contract he received when he re-signed with the Brewers before last season.
Information from The Associated Press was used in this report.
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