(Reuters) - The San Diego Padres have agreed to re-sign pitcher Huston Street to a contract extension, retaining the closer who has made a major impact in his first season with the Padres.

Street will sign a two-year deal worth $14 million and there is an option for an additional year worth $7 million.

"It's an honor" to join the ranks of past great closers for the team, Street told the team's website on Sunday.

"Certainly it's a role I take very seriously, and I want to continue to do it at a level of excellence like those guys did for so many years."

After being traded from Colorado to San Diego in December, Street has been stellar in 2012 where he has converted all 17 of his save opportunities and is 2-0 with a 0.91 ERA.

Street has missed 29 games with a back injury but made the All Star Game earlier this month.

Street has 195 career saves in his eighth season. He started his career in Oakland before joining Colorado.

(Writing by Jahmal Corner in Los Angeles; Editing by Ed Lane)