In exchange, San Jose receives Toronto's 3rd round selection in the 2010 MLS SuperDraft.
As per team policy, financial terms of the deal were not disclosed. To make room on the roster for Garcia, Toronto FC goalkeeper Greg Sutton has been released.
"First and foremost we want to thank Greg for everything he has done for this club," said manager, director of soccer Mo Johnston.
"Greg has always been the consummate professional, he was the first goalkeeper signed by this club, and this was a difficult decision to make. We wish him all the best."