CHICAGO -- Before Wednesday's game against the White Sox, a rumor quickly spread through the press box at U.S. Cellular Field that Royals second baseman Mark Grudzielanek was being traded to the Tigers.

That rumor proved almost true. Just minutes after Grudzielanek hit a three-rum homer that helped spark the team to a six-run third inning and a 10-4 win over the White Sox, the team announced it had signed the 36-year-old second baseman to a contract extension for 2007, with a player's option for 2008.

The Associated Press reported the deal was for $4 million for next season and $4 million to $4.5 million in 2008, depending on plate appearances. Grudzielanek also can earn $250,000 annually in performance bonuses, according to the AP. He had a deal with a $3 million player option for 2007.

"The actuality is, if they didn't see me as part of the team in the next few years, [the trade] probably would have happened," said Grudzielanek. "With both sides liking each other and being happy in the situation and believing in what we have here ... I believe this team can put together a very solid year and be a playoff-contending team very soon."

The Tigers are in need of a second baseman after Placido Polanco suffered a separated left shoulder on Tuesday. Grudzielanek wasn't too tempted by the prospect of playing for the team with the best record in baseball.

"I believe in what we have here," Grudzielanek said. "We have a lot of talent here and we're not too far away. With that said, the interest they have in me, that they want me to stick around, that meant a lot to me. It was one of those things that we got it done and we worked it out. I'm thankful for that and I'm looking forward to it."

Grudzielanek was working his phone before the game, but Royals manager Buddy Bell said he had no idea about the possible deal until the White Sox called him before the game to see if there was a lineup change.

"We didn't know anything about it," Bell said. "Grud was on the phone doing personal stuff. We got a call close to game time from the Sox, thinking Grud had been traded. He was in the lineup the whole time."

Grudzielanek went 3-for-5 with four RBIs on Wednesday, and he was a double shy of hitting for the cycle.

"Mark has been a vital part of this team," Royals general manager Dayton Moore said in a statement. "He has played a key role with his consistent offensive approach and has played Gold Glove-caliber defense this year. We're pleased he has agreed to return for the 2007 season and potentially through the 2008 season."

Grudzielanek, in his first year with the team, had committed just two errors in 509 chances heading into Wednesday's game. He set a franchise record for consecutive games without an error at 77, breaking Frank White's mark of 70 in 1988. Grudzielanek committed his third error of the season in the seventh inning on Wednesday.

The 36-year-old Grudzielanek is hitting .292 and leading the team in hits (127) and runs (67) after Wednesday's heroics.