After an awful 2007 season at the plate, Punto bounced back to hit .284 and was the team's starting shortstop as they chased the Chicago White Sox in the AL Central over the final two months of the season.

He declared free agency at the end of the season and had several teams interested, including the defending World Series champion Philadelphia Phillies.

The defensive dynamo has long been a favorite of manager Ron Gardenhire, who said that Punto would be the team's starting shortstop entering spring training if the club re-signed him.

"Nick has been an important part of the Twins success for the past five years," general manager Bill Smith said. "He provides great defense up the middle and brings leadership and energy to our lineup."

Punto will make $4 million in each of the next two seasons. The deal includes a club option for 2011 at $5 million with a $500,000 buyout. He can also earn an additional $200,000 a year in bonuses tied to plate appearances: $100,000 each for 600 and 650.

Punto signed a two-year deal with more than $4 million to be the starting third baseman after a career year in 2006 when he hit .290 with 21 doubles and 17 stolen bases. But he slumped badly at the plate in 2007, hitting just .210 with a .271 on-base percentage that eventually cost him that starting spot.

He rebounded nicely last season, fighting off a hamstring injury that had him on the disabled list twice for a total of 40 days in the first two months of the season. He had 19 doubles in 99 games and improved his on-base percentage to .344.

Punto also gives the team much-needed flexibility defensively. He played 59 games at shortstop last season and split another 29 starts between second and third base, but figures to get the bulk of the action at shortstop next season.

Smith and the rest of the Twins front office went the winter meetings in Las Vegas looking to shore up the left side of the infield, with holes at shortstop and third base.

One down, one to go.

As the roster stands right now, the Twins will have Brian Buscher and Brendan Harris competing for the job at third base.

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