The deal, agreed to last month, includes a $3 million team option for 2013.
The 41-year-old spent the last two seasons with the AL champion Texas Rangers, going 5-5 with two saves and a 2.29 ERA in 51 innings last year. An 18-year major league veteran. he has a 112-90 record and 4.60 ERA.
To make room on the 40-man roster, Toronto designated infielder Mark Teahen for assignment Monday.