CLEVELAND — Kerry Wood is the Cleveland Indians' new closer.

The former Chicago Cubs star finalized a $20.5 million, two-year contract today, a deal that includes a 2011 option that could become guaranteed.

Wood saved 34 games in 2008, his first season as Chicago's closer. He reached a preliminary agreement with the Indians during the winter meetings in Las Vegas. Wood, who has a long history of arm and elbow problems, had to pass a physical before the Indians would go forward.

The 31-year-old pitcher was confident the Indians wouldn't find any red flags in his medical records.

"There was no doubt in my mind," he said from his home in Arizona. "I was just worried they would need a dolly or two to get them over to them. It was pretty thick."

Wood gets $10 million next year and $10.5 million in 2010. The Indians' $11 million option kicks in if the free agent has 55 games finished in either of the next two years.

The Indians went into the offseason with a closer as their top priority. After Francisco Rodriguez agreed to a $37 million, three-year deal with the New York Mets, they turned their attention to Wood, a former top starter who has revived his career in the back end of the bullpen.

"Kerry was our No. 1 choice," Indians general manager Mark Shapiro said. "I'm not sure there was anyone available who we would want to pitch the ninth inning for us. He fits our culture perfectly. He has great experience."

Wood is 77-61 with a 3.65 ERA in his 10-year career, all with the Cubs. He broke into the majors in 1998 as a flame-throwing fastballer. In just his fifth start, he struck out 20 Houston Astros in a one-hitter at Wrigley Field. He finished the season 13-6, and although he missed the final month with a sore elbow, Wood was chosen the NL's Rookie of the Year.

However, in spring training the following year, he had surgery to replace an elbow ligament and missed the 1999 season, the first of several medical setbacks. He went 8-7 in 2000 and won at least 12 games in each of the next three seasons, striking out a league-leading 266 in 2003.

He had arm and shoulder problems the next few years and won just five games over three injury-riddled seasons.

Following the 2006 season, the Cubs bought out the remainder of his $13 million contract and Wood's future seemed in jeopardy. He accepted a move to the bullpen in 2007 and made 22 appearances after initially pitching in the minors.

He won the closer's job last spring and became dominant again, striking out 84 in 66 1-3 innings, and converting 34 of 40 save opportunities. Wood said the closer's role suits his hard stuff.

"I could come in and let it go," he said, adding it took him only about three weeks to adjust to being a reliever. "I enjoy coming to the park everyday with a chance to get in the game."

Wood has been on the disabled list 12 times in 10 seasons, but the only time he missed last season was because of a finger blister.