The people spoke on condition of anonymity Saturday because the agreement is pending a physical.
"Gotta deal with me for 3 (4) more years!" Rollins wrote on Twitter.
Rollins is a three-time All-Star shortstop and the 2007 National League most valuable player. He has spent his career with the Phillies after being selected in the second round of the 1996 draft, and he was a free agent for the first time.
Rollins, who turned 33 last month, sought at least a five-year deal. The Phillies didn't want to go that long and were able to reach an agreement after the market for Rollins lessened.
From the start, Rollins said he wanted to stay in Philadelphia. He has been the heart and soul of a team that has won five consecutive NL East titles and the 2008 World Series.
Rollins hit .268 with 16 home runs, 63 runs batted in and 30 steals last season. He has been plagued by leg injuries in three of the last four years, and he played in a career-low 88 games in 2010. He started 135 last season.
The Cincinnati Reds addressed their biggest off-season need, acquiring right-handed starter Mat Latos from the San Diego Padres for a package of four players that includes two top prospects.
Cincinnati gave up infielder Yonder Alonso and catcher Yasmani Grandal — both first-round picks — along with starting pitcher Edinson Volquez to get Latos, who initially will move into the No. 2 spot in the rotation behind Johnny Cueto. Latos, 24, was 9-14 with a 3.47 earned-run average for the Padres last season, finishing among the National League leaders in ERA and strikeouts.
The trade surprised Latos, who said the Padres had indicated to him that he wouldn't be going anywhere.
"A little bit of shock and a little bit of excitement," Latos said. "Shock because literally I wake up and I'm traded. Excitement because I'm excited to join a club that's got a lot of talent and a lot of potential. I'm excited for new scenery."
The Reds were willing to give up a lot.
"To acquire a pitcher who is ready to fit into the top of a rotation, you have to give up talent," General Manager Walt Jocketty said.
Latos joins a rotation that includes Cueto, Bronson Arroyo, Mike Leake and Homer Bailey. The rotation was a problem last season, with Cueto opening the season on the disabled list and Arroyo struggling with mononucleosis.