According to ESPN.com, Hamilton will receive $25 million a year over the next five seasons.
A five-time All-Star and the 2010 MVP, Hamilton was an instrumental part of the Texas Rangers' success as of recent. He was part of the Rangers first World Series appearance in 2010 and a repeat appearance in 2011.
Hamilton made a costly error during a loss to the Oakland Athletics that ultimately decided the AL West last season.
He will replace Torii Hunter who joined the Detroit Tigers last month.
Hamilton's 2012 season was less than impressive. He struggled offensively only hitting .285 with 48 home runs and 128 RBI's. A vision problem forced him to miss five games.
This is a man who changed his life around after dealing with drug abuse and alcoholism, and relapsed in early February this year. According to an ESPN Dallas/Fort Worth article, he admitted to having drinks at a local Dallas bar before former teammate Ian Kinsler convinced Hamilton to go home.
With Hamilton signing with the Angels, he will be reunited with his former Rangers teammate, pitcher C.J. Wilson.