Baltimore ? Rafael Palmeiro is returning to Baltimore, where he enjoyed five outstanding seasons before his acrimonious departure in 1998.

Palmeiro, 39, agreed to terms with the Orioles Saturday, accepting a one-year contract with a club option for 2005.

The first baseman/designated hitter became a free agent after spending the past five seasons as a member of the Texas Rangers.

Palmeiro hit .260 with 38 homers and 112 RBIs last year. During an outstanding career that began in 1986 with the Chicago Cubs, he’s hit .291 with 2,780 hits and 528 home runs.

“Raffy is one of the steadiest, most consistent hitters in the game. He’s a former team MVP and helped us to the postseason twice,” said Mike Flanagan, Orioles vice president for baseball operations.

After the strike-shortened 1994 season, Palmeiro averaged 40 home runs and 119 RBIs in his final four years with Baltimore.

He helped the Orioles reach the playoffs in 1996 and 1997, and made the All-Star team in 1998.

But Baltimore moved slowly in negotiating a new deal after the 1998 season, and Palmeiro ultimately rejected a five-year, $50 million offer from the Orioles and signed a five-year, $45 million contract with Texas.

At the time, Palmeiro said the deciding factor was that he wanted to play close to home. The Orioles privately accused him of prolonging negotiations to drive up the Rangers’ offer.

And now, the Orioles and Palmeiro are united again with the same goal: to reach the playoffs.

“It brings another powerful hitter to the middle of our lineup,” Flanagan said.