Fox Sports earlier reported the two sides had reached an agreement.
The deal is still pending a physical.
Jimenez went 13-9 with a 3.30 ERA in 32 starts for Cleveland last season. He turned down a $14.1 million qualifying offer from the Indians, so Baltimore would have to forfeit its first-round draft pick (17th overall) to sign him.
Orioles executive vice president Dan Duquette has been searching for a veteran starter for much of the offseason to help anchor the rotation. Jimenez is 82-75 with a 3.92 ERA over eight major league seasons.
The 30-year-old right-hander broke into the majors with Colorado in 2006. His best season was 2010, when he went 19-8 with a 2.88 ERA in 33 starts for the Rockies.
Information from The Associated Press was used in this report.