According to Mark Sheldon:

Free agent Jerry Hairston Jr. is returning to the Reds. A baseball source told MLB.com that Hairston and the club agreed to terms on a one-year contract worth a guaranteed $2 million on Tuesday. It's an incentive laden deal that could be worth up to $4 million.

An announcement is expected on Wednesday. The Royals and Cardinals were the other teams competing for Hairston's services.

It appears that Cincinnati plans to make Hairston its starting shortstop this season because Alex Gonzalez won't be ready.

I don't mind re-signing Hairston, but I don't like him being the starting SS.

And I guess this means they still need an outfielder...