The Twins announced this afternoon that they have agreed to a contract extension with closer Joe Nathan through the 2011 season with an option for the 2012 season as well. Salary numbers were not released, but Nathan is expected to earn somewhere near $12 million per season.

In his tenure with the Twins, Nathan has collected 160 saves which is tied for the most in the American League with potential Hall of Fame closer Mariano Rivera. Nathan ranks second on the Twins’ all-time saves list behind just Rick Aguilera who has 254.

With at least four years remaining for Nathan in a Twins uniform, it looks likely that Nathan will become the all-time team leader for saves if his production doesn’t slow. He’ll need to average just 23.5 saves per season to take the team record.