The Argentine midfielder will move to the other end of Canada to make room for Toronto's new DP signings.
The writing had been on the wall for 22-year-old Laba after TFC signed three other designated players -- Gilberto, Michael Bradley and Jermain DeFoe -- in the offseason, taking the Ontario side above the maximum of three marquee-salaried players.
Whitecaps coach Carl Robinson was pleased to have pulled off the deal for the former Argentina youth international.
"He's a tough-tackling, hard-nosed central midfield player," enthused Robinson. "Does a lot of his work in areas just in front of the back four, he's a link between the midfield, the back four and that forward area,a nd he's different to what we've got.
"I think bringing in a player of his quality in a trade is fantastic for the club moving forward and it adds to our already talented pook of youngsters.
"I want good players in this team, in this squad moving forward, and he certainly fits into that category. We look forward to having him, I've spoken to him and he's excited to come, and we can't wait to get him integrated into the group."
Laba played 16 games for Toronto last season, scoring one goal.