Nady and the Cubs agreed to terms on a one-year deal worth $3.3 million on Tuesday pending a physical. Nady is rehabbing from the second Tommy John surgery of his career after missing all but seven games last season with the New York Yankees.
"The arm is doing well," Nady said. "It's progressing each week, and I'll continue to do my throwing program for the next two and a half months. When April rolls around we'll have to take a look at everything and see where I'm at, but from a physical standpoint I'm feeling good."
Nady likely will be a pinch-hitter and part-time replacement player in April.
"There's no way to predict when that throwing will be 90 percent to 100 percent but he's on the maximum path that you could expect at this particular date," Cubs general manager Jim Hendry said. "We know that he will be ready to hit by Opening Day, and we'll ease him into it the right way for his good, too over the long haul."
Nady's best season came in 2008 when he batted .305 with 25 home runs and 97 RBIs for the Pittsburgh Pirates and the Yankees.
Nady was one of 14 players with a .300 batting average and 25 home runs that season. He batted .317 against right-handers in 2008 and .262 against lefties. Over the past three seasons, Nady is a .297 hitter against right-handed pitching.