The 22-year old striker will officially join from Argentine club Rosario Central when he passes a medical on Wednesday and will then take up an international player slot upon the arrival of his international transfer certificate.
New England's vice-president of player personnel, Michael Burns, said that the acquisition of Caraglio was a very exciting one for the club.
"We've been pretty open and public about our desire to add a player or two during this window," Burns told MLSsoccer.com on Tuesday afternoon.
"We're looking forward to getting Milton in as quickly as possible and getting acclimated to our guys, both on and off the field."
The Revs had been interested in Caraglio for a while and Burns said his record in Argentina along with the fact that clubs such as Catania and West Ham United were keen forced them to move for the talented attacker.
"When all of that added up - and, obviously, it took a little bit longer than we had hoped - we were glad we were able to get it done," Burns added.
"We look forward to his arrival."