It is understood that the 31-year-old will fly to Canada on Sunday ahead of a commercial engagement on Monday before returning to Tottenham on loan - possibly until the end of April.
Defoe will earn in the region of £90,000-a-week at Toronto in what is one of the biggest deals in MLS history.
The England international was not mentioned by name on Toronto's official website but a teasing image on its homepage talked up an imminent "big deal".
Details of his arrival were apparently leaked to the local press - much to the annoyance of Spurs, who hoped to delay an announcement until after this weekend's game against Crystal Palace.
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