SAN DIEGO -- National League Cy Young Award winner Jake Peavy passed his physical Tuesday in San Diego, thus clearing the last hurdle that stood between him and the $51.9 million contract extension the two sides agreed upon last week.

A formal press conference is expected Wednesday at PETCO Park, where the 26-year-old Peavy will be present. The Padres and Peavy's agent, Barry Axelrod, agreed to the deal a week ago in Nashville, Tenn., the site of the Winter Meetings.

According to the San Diego Union-Tribune, Peavy had an MRI exam on his right shoulder Tuesday as part of the physical. Peavy had shoulder tendinitis in his right shoulder in 2006, although the right-hander bounced back big in 2007.

Peavy led the National League in victories (19), ERA (2.54) and strikeouts (240).

Peavy's contract extension, which will run through the 2012 season and will include an option for the 2013 season, is the largest in franchise history, far surpassing the four-year, $34 million contract Phil Nevin signed in 2001.

Because he won the Cy Young Award, Peavy's 2009 club option jumped from $8 million to $11 million. He will make $15 million in 2010, $16 million in 2011 and $17 million in 2012. If the Padres decline his $22 million option for 2013, Peavy will get a $4 million buyout.

"I think it sends a great message to everybody in San Diego, and I think it's a great indicator of Jake's willingness to stay, of the Padres' commitment to keeping our core players," manger Bud Black said during the Winter Meetings.

"He's obviously one of the best pitchers in the game, and to have him on board for it looks to be another six years, another six seasons, it's great. And he's still 27 years old, so he's got a lot of great pitching left ahead of him."