Colman joins the team on a young designated player contract. While the transfer fee was not disclosed, sources reported to Goal earlier this month the price would be around $2 million.
Sources also indicated Dallas beat out Liga MX side Club Leon, in addition to multiple South American sides, for the 22-year-old’s signature.
"Cristian Colman is a guy who will come here and score goals," FCD technical director Fernando Clavijo said in a news release. "Hopefully, he can help us to win an MLS Cup and a CONCACAF championship. We’re really excited."
Colman has spent the past two seasons with Nacional Asuncion after making a move from Club Atletico 3 de Febrero following the 2014 season, during which he scored 13 goals in 40 appearances. He went on to score 18 times in 65 appearances over the next two seasons with Nacional Asuncion.
The attacker appeared three times for Paraguay's Under-23 team at the 2015 Pan-American Games.
Colman figures to compete with Maximiliano Urruti for a starting spot up top, with midfielder-forward Tesho Akindele also an option for Dallas.