The Raptors welcomed Bennett, a native of Toronto, on Twitter.
On Sunday night, Bennett tweeted his excitement about playing in Canada and included an Instagram link of himself signing his contract.
Glad to officially be a part of the Raptors organization, Excited to get this year started !!! #LetsGo— Anthony Bennett (@AnthonyBennett) September 27, 2015
"It's been something I've been thinking about growing up, watching Vince Carter play," he said Monday. "Now I'm back here now. [It's] surreal but at the same time it's work. I'm just ready to go all out."
His deal with the Raptors is expected to be for $947,276.
Bennett cleared waivers Friday. The Philadelphia 76ers and Portland Trail Blazers were the only teams with sufficient salary-cap space to claim him, though the Cleveland Cavaliers had a trade exception big enough to absorb Bennett's $5.8 million salary.
The move to Toronto, after a strong summer with the Canadian national team, might be the spark Bennett needs to kick-start his career after rough stints with the Cavaliers and Timberwolves.
"He's a super young man and a young talent," Raptors coach Dwane Casey said. "He's only 22 years old, and it was a good situation for us to bring him back. Not only because he's Canadian, because he's a very talented young man who needs a good opportunity."
Added general manager Masai Ujiri: "He's going to have to work, but I think he's up for the challenge."
Bennett credits his time with the Canadian national team for making basketball fun again.
"Honestly, I feel like Team Canada helped me out a whole lot," he said. "Just playing, the confidence, healthy again. Just going out there and playing with a clear mind. I feel like that is what I need to get back to."
The top pick of the 2013 draft by the Cavaliers, Bennett was traded to Minnesota in the Kevin Love deal in the summer of 2014. He struggled with injuries in his lone season with the Timberwolves.
Bennett averaged 5.2 points and 3.8 rebounds in 57 games for the Timberwolves last season.
Minnesota had attempted to deal Bennett but could not find a trade partner, a league source previously had told ESPN's Chris Broussard.
The Associated Press contributed to this report.