Orioles vice-president Dan Duquette said in a conference call on Friday that the club "wasn't satisfied" with the results of the 35-year-old Australian hurler's physical exam.

He didn't elaborate, but The Baltimore Sun reported that the issue was with Balfour's right shoulder.

Balfour missed all of the 2006 season recovering from a shoulder surgery the previous year.

However, he has appeared in at least 62 games in each of the past three seasons, and saved a career-high 38 games for American League West division champions Oakland in 2013.

Last week he and the Orioles had reached agreement on a two-year deal worth a reported $US15 million ($16.98 million), which was expected to be made official on Friday.

"The Orioles are moving on from this situation," Duquette said. "There was no contract. There was an understanding pending a physical exam."

Balfour was slated to replace Jim Johnson, whom the Orioles traded to Oakland earlier this month.

The Orioles could turn back to the free-agent market to find Johnson's successor.

"I guess the good news is we have other options to look at as we continue to try to improve our ball club," Duquette said.

AFP