The team announced the deal on Monday. He was expected to get $1.25 million.
Escobar, an 18-game winner in 2007, missed nearly all of the past two seasons with the Los Angeles Angels because of shoulder trouble. If healthy, he would likely work out of the bullpen for the Mets, who are looking for setup help for All-Star closer Francisco Rodriguez.
The 33-year-old Escobar has extensive relief experience from his days in Toronto. He came up with the Blue Jays in 1997 and saved 38 games in 2002.
Escobar was cleared a few weeks ago to pitch by Mets medical director Dr. David Altchek, who performed shoulder surgery on Escobar in July 2008.