Kruger's deal is worth $40 million, league sources told ESPN NFL Insider Adam Schefter.
The 27-year-old linebacker will sign his deal on Wednesday before he's introduced at the team's training complex in suburban Berea. The Browns officially announced the agreement with Kruger on Tuesday night.
After landing Kruger, the Browns also agreed with Raiders defensive tackle Desmond Bryant on a five-year contract worth $34 million, according to league sources.
"We are very excited about the addition of Paul Kruger to our team," new Browns coach Rob Chudzinski said in a release. "He is a talented linebacker who is going to make an immediate impact on our defense. When you put on the film you see physicality, explosive pass rush and a high motor. He has been very productive for the Ravens, and proved it at the highest level last season in the playoffs."
Entering free agency with over $47 million in salary-cap space, Browns CEO Joe Banner and general manager Mike Lombardi wasted little time landing Kruger, considered one of the top outside rushers in this year's free-agent class. He had 13½ sacks last season -- 4½ in the playoffs -- and will strengthen a young Cleveland defense transitioning from a 4-3 defensive scheme to a 3-4 multi-front formation under new coordinator Ray Horton.
"Paul is the type of player we were looking to bring on at the outset of free agency, and we are thrilled that we were able to sign him," Banner said. "Not only do we feel strongly about his ability as a football player, but he will add a great deal from a leadership standpoint as well. He has exhibited marked improvement each year of his career and we believe he can help the Cleveland Browns for many years to come."
Kruger's signing supports new Browns owner Jimmy Haslam's pledge to turn around a franchise that has lost at least 11 games in each of the past five seasons and made the playoffs once since 1999. And now that they've addressed one of their biggest needs, the Browns may target a tight end, cornerback and perhaps a quarterback in free agency to bring in as competition for Brandon Weeden.
During the recent three-day negotiating window, the Browns reportedly talked to agents for players at all three positions, but with teams releasing players in the early hours of free agency, the market has already changed.
It's not known if the Browns have had any contact with the representatives for Pro Bowl kicker Phil Dawson or return specialist Josh Cribbs, the club's two longest-tenured players. Dawson, who has spent 14 seasons with Cleveland, left in December thinking his days with the Browns were over. Cribbs reportedly has drawn interest from several teams, including the Arizona Cardinals.
Kruger had a breakout season for the Ravens in 2012.
After getting nine sacks during the regular season, he was a disruptive force in the postseason and twice sacked San Francisco quarterback Colin Kaepernick in the Super Bowl as Baltimore held off the 49ers to win the title. It was a fitting finish for the 6-foot-4, 270-pounder, who started a career-high five games after starting just one in his first three NFL seasons.
Drafted in the second round (No. 57 overall) in 2009 from Utah, Kruger, a quarterback in high school, was slow to develop and initially found it difficult to get playing time on a star-studded Ravens team with talented linebackers and pass rushers. However, with linebacker Terrell Suggs sidelined last season with a torn Achilles tendon, Kruger got a chance to play more and became the team's most efficient rusher.
He made $615,000 last season in the final year of his original deal with Baltimore.
In getting Kruger, the Browns are not only hoping to bolster their defense but take another piece away from the Ravens, who are undergoing a massive makeover after signing quarterback Joe Flacco to a new contract. Baltimore traded wide receiver Anquan Boldin to San Francisco, and the AFC North champs also reportedly lost inside linebacker Dannell Ellerbe in free agency to Miami. Perennial Pro Bowl safety Ed Reed could be next.
Kruger recorded 69 tackles and 15½ sacks in 51 games for the Ravens. He joined them with a tough-guy reputation after he survived being stabbed by a gang member in Utah while hosting his younger brother on a recruiting visit. Kruger suffered a collapsed lung and punctured artery in the attack.
He overcame a back injury last season, when he had just 1½ sacks in Baltimore's first seven games. But Kruger picked it up and had sacks in five straight games -- tying the franchise record -- beginning with two against Oakland on Nov. 11. He had 7½ sacks in the final eight games, and finished with career-highs in tackles (42), passes defensed (6) and forced fumbles (1).
Bryant, 27, spent his first four seasons with the Raiders. The 6-foot-6, 311-pound run stuffer played in all 16 games last season, recording 36 tackles and four sacks.
Information from The Associated Press was used in this report.