Jimenez will earn $5.75 million next season and the Indians have a $8 million mutual option for 2014.
Jimenez started 31 games for the Indians in 2012 and finished with a 9-17 record with 143 strikeouts and a 5.40 ERA. Jimenez also walked 95 batters in 176.2 innings which was the highest mark for a Cleveland pitcher since 2000. The 17 losses were also the worst in the American League last season.
Jimenez was the first pitcher in five seasons to have at least 17 losses and a 5.40 ERA. Daniel Cabrera and Jose Contreras accomplished the feat in 2007.
Jimenez also led the American league in wild pitches with 16 and stolen bases allowed with 32.
The Indians also declined options for designated hitter Travis Hafner and right-hander Roberto Hernandez.