Chapman is set to hit free agency following the 2023 season, so this deal with the Blue Jays buys out his final two years of arbitration.
He did not give up any free-agent years, sources told ESPN, and just got cost certainty for 2023, regardless of how he performs in his first season with the Blue Jays.
Chapman, an All-Star in 2019, spent his first five seasons with Oakland, registering a .243 career batting average. Last season, he batted just .210, with 27 home runs and 72 RBIs, while striking out more than 200 times.
He earned $6.54 million in 2021, including a $50,000 bonus for winning the Gold Glove.
Toronto went 91-71 last year but finished one game behind Boston and New York in the AL wild-card race.