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The Baltimore Orioles will not be signing free agent closer Grant Balfour as the club backed away from a two-year deal in the franchise's latest episode in nixing a contract that appeared to be agreed upon.

Orioles executive vice president of baseball operations Dan Duquette says that the club was not satisfied with the results of his physical examination.

"The Orioles were disappointed we couldn't complete a contract with Grant Balfour," Duquette said in a Friday conference call.

EARLIER: Balfour, Orioles reach agreement

Baltimore and Balfour came to a reported two-year $15 million agreement with $1 million deferred on Tuesday pending results of the physical. Duquette said the team would not seek to restructure the agreement.

Duquette says the Orioles will "turn our attention elsewhere for now."

Duquette declined to say what the specific concerns over Balfour were, but the right-hander had shoulder and elbow operations that kept him out of the major leagues in 2005 and 2006.

Balfour's agents released a statement noting that two noted orthopedists - Koco Eaton and Tim Kremcheck - examined Balfour on Friday and both found him healthy.

Eaton is the Tampa Bay Rays' team physician - Balfour played for the club from 2007-2010 - and Kremcheck performed elbow and shoulder surgeries on Balfour in 2005.

Balfour told the San Francisco Chronicle that he was puzzled the Orioles backed away from the deal. "I'm the All-Star pitcher I was last season," he said. "My shoulder is fine, everything is fine. I'm ready to come out there in the ninth inning, do what I do.

"I guess they chose to go another route."

Under owner Peter Angelos, the Orioles have backed away from multiple deals due to physical concerns. Before the 2000 season, they reached agreement with free-agent pitcher Aaron Sele on a three-year, $21 million deal, but backed away after concerns over Sele's labrum; he signed a two-year, $15 million deal with the Seattle Mariners.

After the 2005 season, they reached agreement on a two-year, $12 million deal with slugger Jeromy Burnitz, but contractual language related to potential medical issues led to Burnitz's agent nixing the deal.

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