Incentives could push the total value of the contract to $5 million, CBSSports said, without saying where it got the information.
Ibanez, 41, might help the Angels offset the loss of Mark Trumbo, who was traded to Arizona last week after hitting 34 homers during the 2013 Major League Baseball season.
Ibanez, a designated hitter who can play outfield and first base, hit 24 of his 29 homers before the All-Star break last season. He has 300 career home runs, hitting at least 20 or more in seven of the past nine seasons.
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