The deal would be almost identical to Dotel's $3.2 million base salary in 2010, with nearly half a million in performance-based incentives.
"We only need some minor details to complete the deal," the source said.
Dotel, 37, had 22 saves and a 4.08 ERA in time with Pittsburgh, Los Angeles and Colorado in 2010. He struck out 75 batters in 64 innings, while walking 32 and allowing 52 hits.
The right-hander is 49-43, with a 3.75 ERA and 105 saves in his 12-year MLB career.
In Toronto, Dotel could get a chance to be a closer, a factor that led him to more seriously consider the Blue Jays' offer over others from Pittsburgh and Tampa Bay, the source said.
Enrique Rojas is a reporter and columnist for ESPNdeportes.com and ESPN.com.