TORONTO - Gregg Zaun remained with the Toronto Blue Jays, agreeing Tuesday to a $7.25 million, two-year contract after Rod Barajas backed out of an apparent deal.

Gregg Zaun, shown in this 2006 file photo, remained with the Toronto Blue Jays, agreeing Tuesday Nov. 29, 2006 to a $7.25 million, two-year contract after the team's apparent agreement with Rod Barajas fell through. (AP Photo/File)

Toronto general manager J.P. Ricciardi quickly resumed negotiations with Zaun after Barajas decided not to go through with the deal and switched agents. Ricciardi thought he had an agreement with Barajas.

"Where I come from your word and your handshake means something. In this case it didn't. It's unfortunate," Ricciardi said. "We had more than a handshake."

Barajas needed only to pass a physical for his deal with the Blue Jays to be finalized, and it was to be announced Tuesday.

"I'm amazed at the world sometimes. Your word means something," Ricciardi said.

Ricciardi wanted to bring back Zaun, but was initially reluctant to meet his asking price. Zaun's new deal includes an option for 2009 that could become guaranteed based on appearances.

Zaun was said to have drawn interest from Boston and New York, where he would have been a backup.

"Zaunie was our first choice all along. It just hit a snag there at one point. I called him last night and said 'Zaunie, if you want to be a Blue Jay we got to make it happen now,'" Ricciardi said.

Zaun hit .272 with 12 home runs and 40 RBIs last season as the backup to Bengie Molina, whom Ricciardi is not interested in re-signing.

Barajas batted .256 with 11 homers and 41 RBIs in 97 games for Texas. Barajas agreed to an annual average salary with Toronto that was less than the $3.2 million he made last season. His contract with Toronto was supposed to a $5.25 million, two-year deal.

The Blue Jays held a news conference Tuesday to introduce designated hitter Frank Thomas, who agreed to a $18.12 million, two-year contract earlier this month.

The 38-year-old led the Oakland Athletics with 39 homers and 114 RBIs this year, batting .270. Thomas has hit .305 with 487 homers and 1,579 RBIs in 17 major league seasons, 16 with the Chicago White Sox.

"This was one of the teams I wanted to play for if I had to leave," Thomas said. "At the end of my career I'm all about winning. I know this team is very close."

Thomas said they could also use a "superstar pitcher" to compete with New York and Boston.

Ricciardi said they don't have the money to do that, but would like re-sign free agent left-hander Ted Lilly. He had an interest in free agent second baseman Adam Kennedy, but said Kennedy was going to get more money that he was willing to pay.

Ricciardi reiterated that he'd like to sign center fielder Vernon Wells to an extension. Wells is due $5.6 million next year, the final season of a five-year contact.