The San Diego Padres signed free agent pitcher Larry Andersen to a two-year contract with an option for 1993. He will earn $4.4 million for the next two seasons and the deal will be worth $6 million if the Padres pick up the option year.

Andersen, 37, spent most of last season with Houston, where he was 5-2 with six saves and a 1.95 ERA in 50 relief appearances. The nine-year veteran was traded to the Red Sox in August and appeared in 15 games, notching one save and a 1.23 ERA. . . .

Pitchers Lance McCullers of Detroit, John Cerutti of Toronto, Jeff Musselman of the New York Mets and Pat Clements of San Diego were among 13 players who became free agents when their teams failed to offer them contracts.

Under the collective bargaining agreement between the players and the clubs, all players on 40-man rosters must have been offered contracts by Thursday. Those not on rosters automatically become unrestricted free agents.

Baseball players and owners formally ended their five-year collusion battle when they signed a 39-page agreement yesterday.

The deal calls for the 26 clubs to give the Major League Baseball Players Association $280 million -- $120 million on Jan. 2, and four payments of $40 millon plus interest on July 15, Sept 15, Nov. 15, and April 15, 1992. It also formalizes the new-look free agency granted to 15 players on Dec. 7.

The deal was reached in a handshake agreement by lawyers for the two sides on Oct. 26, but took two months to draft because of tax complications.

Lauren Rich, a union lawyer, said she believes as many as 1,000 players may put in claims for the money.