The two-time National League Cy Young Award winner made $650,000 last season, but had filed for $13 million.
The Giants had countered with an $8 million offer, and Fox Sports said the deal pays $23 million for two years.
"I've already heard (about) things that could go on in that (arbitration) room," he told KNBR 680 Radio in San Francisco Feb. 5 at the team's annual FanFest. "Going through arbitration, everybody knows what can happen and the feelings that can get hurt."
A physical is pending before the Giants comment.
Lincecum was 15-7 with the Giants in 2009 with two shutouts, four complete games, an ERA of 2.48 and a major league-leading 269 strikeouts.
He went 18-5 in 2008, when he won his first Cy Young Award.
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