By JOEL SHERMAN

The Royals signed pitcher Brian Bannister to a one-year $1,737,500 contract, avoiding arbitration, the Post has learned.

Bannister can earn an additional $25,000 by pitching 200 innings and also by making the All-Star team.

In the arbitration process, Bannister had been asking for $2.025 million and the Royals had countered at $1.45 million.