The 34-year-old goalkeeper will join the MLS outfit as he looks to play first-team football ahead of the World Cup in Brazil
The 34-year-old, who was included in the latest Brazil squad on Tuesday, has made just a single appearance for his parent club this season and joins the MLS outfit until the end of the season.
With the 2014 World Cup in his home country just four months away, Cesar will be keen to get some game time under his belt as he bids to remain in contention for a call-up.
"I'm really happy to come to Canada," said Cesar. "I would like to thank to Toronto FC.
"I'm really excited to start work with my new colleagues at this new club."
And Cesar confirmed he had spoken to national team coach Luiz Felipe Scolari and Brazil technical director Carlos Alberto Parreira about making the move to Toronto.
"When I accepted to come here I spoke to Scolari and Parreira beforehand," he continued. "Parreira knows the league well and he said 'if you go there you will play in a tough league'.
"I don't have doubts to come quickly."
The former Inter shot-stopper also revealed his relationship with Toronto coach Ryan Nelsen was a major factor in his decision, with the pair having previously played together at QPR.
And the New Zealander joked the move only came about "because Julio's saved my arse so many times".
He added: "It was an absolute no-brainer when it came about."
Cesar is the latest big name to arrive in Toronto, with Jermain Defoe also joining the club in the off-season.