The Daily Mail says Defoe has agreed a £90,000-a-week deal to join MLS side Toronto in January.
And the 31-year-old will link up with former team-mate Ryan Nelsen who is in charge of the Canadian side after they made a successful bid of £6million.
Toronto will match his £67,000-a-week deal at Spurs but his salary will be topped up by bonuses.
The MLS season does not start until March and Defoe is believed to be keen to stay in London until then so as not to further harm his chances of making the England squad for the World Cup in Brazil next summer.
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