No surprise here: it was just a matter of time. Adam has the scoop:
Vargas made $1.275 million in 2006, going 12-10 with a 4.83 ERA for Arizona, and was seeking $2.85 million in arbitration. The Brewers offered $2.15 million, and it's likely that Vargas signed for something close to the $2.5 million midpoint. The team did not announce terms.
Johnny Estrada and Bill Hall are the only guys left. Let's get that seven-year deal for Billy done, and quickly!