Morales, 28, joins Vancouver on a free transfer from Spanish outfit Malaga.
“Pedro is an exciting attacking player and we are thrilled to have him join our club,” Whitecaps head coach Carl Robinson said in a statement. “He is a natural number 10 who will bring a creative flare to our attack and is someone the supporters will enjoy watching.”
A Chilean international with 11 caps for his country, Morales has vast professional experience in South America and Europe. Having started his career as a teenager at Chilean side Huachipato, Morales's resumé includes extended stints at Universidad de Chile and Dinamo Zagreb. He joined Malaga in 2013 and made 22 league appearance for the La Liga side.
Morales becomes the latest of an influx of Latin players in Vancouver as rookie coach Robinson looks to give his side a different identity from previous Whitecaps squads. Fellow newcomers to the Lower Mainland side include Argentine young DP Matias Laba and Uruguayan duo Santiago Fernandez and Nicolas Mezquida.