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 San Francisco, idle on Monday before opening a series at Philadelphia on Tuesday, is tied with Colorado for the NL wild-card lead and looking to make the playoffs for the first time since 2003.
Penny is expected to pitch Wednesday against the NL East-leading Phillies.
The 31-year-old right-hander was cut by the Red Sox on Thursday after going 7-8 with a 5.61 ERA this season
-- including 1-6 in his last 11 starts. Boston signed the two-time All-Star to a $5 million, one-year contract last winter after he spent four-plus seasons with the Los Angeles Dodgers.
Penny won 16 games for the Dodgers in 2006 and 2007, his career high. He was hampered by shoulder problems last year.
With injured lefty Randy Johnson on the 60-day disabled list, Penny gives San Francisco another accomplished starter to join reigning NL Cy Young Award winner Tim Lincecum, Matt Cain, Barry Zito and Jonathan Sanchez.
Penny went 2-0 with a 2.19 ERA in two starts during the 2003 World Series, helping Florida beat the New York Yankees.
He is expected to join the Giants on Tuesday in Philadelphia. Before he can pitch Wednesday, San Francisco must make a move to clear a spot for him on the 25-man roster.
The Giants have an opening in their rotation Wednesday after pushing Lincecum back to Thursday to give him an extra day of rest. San Francisco optioned fifth starter Joe Martinez to Triple-A Fresno on Friday.
The Big Unit, who won his 300th game in June, hopes to return from a shoulder injury in a few weeks but most likely as a reliever.
Penny is in his 10th major league season. He was a fifth-round draft pick by the Arizona Diamondbacks in 1996.
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