MLB, the union and NPB have been working on a new posting agreement for weeks now. A system with some modifications will take effect next offseason.
The agreement was first reported by the New York Post and confirmed by ESPN.
Because the 23-year-old is under 25, he falls within global pool rules, which means he can only collect a bonus for what teams have left in their allocations, which range from $10,000 to just above $3.5 million.
MLB and Nippon Professional Baseball reached agreement several weeks ago on the framework of a new deal.
Ohtani is viewed as Japan's Babe Ruth.
The agreement extends the deadline until Tuesday at 8 p.m. EST.
According to a New York Post report, Major League Baseball and the MLBPA agreed to retain the posting system for this offseason, with modifications to be installed beginning next winter.
Only three other clubs-the Pittsburgh Pirates, Miami Marlins and Seattle Mariners-can offer upward of $1 million.
Ohtani is the reigning Pacific League MVP and was 3-2 with a 3.20 ERA this year for the Fighters, limited because of thigh and ankle injuries.
A right-hander, Otani has a 42-15 record with a 2.52 ERA and 624 strikeouts in 543 innings over five seasons, and a.286 batting average with 48 homers and 166 RBIs.
Money might not be the end all for Ohtani, though, because if it was he could have waited until he was 25 and signed a massive deal instead of one that has to come out of the pool allotment. But he has consistently expressed a desire to test himself against top competition regardless of the financial ramifications.
Commissioner Rob Manfred seemed unworried about the deadline and the possibility that Ohtani wouldn't make it to an Major League Baseball team this year, which turns out was the right position to take, as an agreement is now in place, and Ohtani will more than likely be in an Major League Baseball uniform next year. "And it is my strongest reason for wanting to go now".