The Pirates have announced that they've avoided arbitration with Mark Melancon. No figures are yet available, although MLBTR projected Melancon would get $10 million. The Bucs also announced all their other previously reported arbitration-avoiding deals with other players (except Chris Stewart, who reportedly agreed to an extension and thus could receive a separate announcement). That means there won't be any arbitration cases this year for the Pirates, who last season took three players through the process (Neil Walker, Pedro Alvarez and Vance Worley).
That the Pirates reached a deal with Melancon for 2016 does not have much bearing on whether or not they trade him, although the cost certainty involved could perhaps make a deal slightly easier. Melancon is, of course, eligible for free agency next winter, and he'll likely be quite expensive once he gets there. Whether the Bucs deal him this offseason or not, he likely won't be with the Bucs in 2017.
UPDATE: Melancon will receive $9.65 million.