The agent, Dominic Torres, said the deal includes a $3.5 million team option in 2012.
Dotel will have a base salary of $2.75 million next season. The contract includes a $750,000 buyout if Toronto does not pick up his 2012 option.
Dotel, who is in the Dominican Republic, will travel to Dunedin, Fla., after the New Year's festivities to undergo a physical exam. Dunedin is the spring training site for the Canadian franchise.
"Octavio is excited about playing for a team that will give you the opportunity to close games in the strongest division in baseball," Torres said.
Kevin Gregg, who saved 37 games as the Blue Jays' closer last season, is a free agent.
Enrique Rojas is a reporter for ESPNdeportes.com.