Díaz, who was released by the Rockies, seeks a path to postseason eligibility with the Padres after declining a guarantee from the Giants.
The signing of Díaz on a minor league contract allows him the chance to play in the postseason, provided he joins the Padres organization by September.
With the Padres eight games ahead of the Giants in standings, signing with them increases Díaz's likelihood of joining a playoff roster.
Díaz's deal with San Diego ensures his $6MM salary from Colorado while allowing for a possible major league call-up at the prorated minimum salary.
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