Arbitrators Phillip LaPorte, Steven Wolf and John Kagel made the decision Wednesday, a day after hearing arguments.
Garcia was a first-time All-Star last year, when he was second in the AL batting race and set career bests with a .330 average, 18 homers and 80 RBIs. He made $3 million.
Minnesota pitcher Kyle Gibson went to a hearing and asked Robert Herzog, Elizabeth Neumeier and Gary Kendellen for $4.55 million, $250,000 more than the Twins' offer. The 30-year-old right-hander was 12-10 with a 5.07 ERA last year, when he earned $2.9 million.
Players lead 8-6 with decisions to be announced Thursday for Gibson and fellow pitchers Collin McHugh, Marcus Stroman, Jake Odorizzi and Trevor Bauer. Three more hearings are scheduled for this week, and 22 decisions would be the most since players won 14 of 24 cases in 1990.
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