BOSTON -- The Red Sox exercised their $7.7 million option on Victor Martinez and declined options on Jason Varitek and Alex Gonzalez on Monday.

Boston also agreed to a $5 million, two-year contract with 43-year-old knuckleballer Tim Wakefield, replacing a perpetual $4 million annual club option.

The moves on the options were expected after Boston obtained Martinez from the Cleveland Indians on July 31 and he replaced Varitek as the starting catcher. The club option for Varitek was worth $5 million, but he can stay with the team if he exercises his $3 million player option.

The Red Sox also could try to keep Gonzalez at shortstop for less than the $6 million option. He receives a $500,000 buyout.

Martinez and Gonzalez played well for the Red Sox while Varitek struggled offensively for the second straight season. Wakefield was sidelined most of the second half with a back injury after making the All-Star team for the first time.

Martinez made the AL All-Star team for the third time and finished with a .303 batting average, 23 homers and 108 RBIs in 155 games as a catcher, first baseman and designated hitter. For Boston, he batted .336 with eight homers and 41 RBIs in 56 games.

The Red Sox obtained the 32-year-old Gonzalez from the Cincinnati Reds on Aug. 14 and he provided his usual outstanding fielding and some unexpected hitting. In 44 games with Boston, he hit .284 with five homers and 15 RBIs. For the season, he hit .238 with eight homers and 41 RBIs in 112 games.

The 37-year-old Varitek hit a career-low .209 with 14 homers and 51 RBIs after batting .220 with 13 homers and 43 RBIs in 2008. His career average is .259.

Wakefield was 11-5 with a 4.58 ERA but was limited to 21 starts. He had surgery for a herniated disk on Oct. 21 and said he wants to pitch as long as possible. He is 189-162 with a 4.33 ERA in 17 seasons, including 175 victories in 15 years with Boston. Roger Clemens and Cy Young hold the franchise record of 192 wins.