The deal is pending a physical, The Athletic reported.
Donaldson, the 2015 American League MVP, joined Cleveland just before the Aug. 31 waiver deadline. Because of an assortment of injuries, he was limited to just 16 games with the Indians and had only one hit in the postseason.
The 32-year-old Donaldson batted a combined .246 with eight home runs and 23 RBIs in 52 games for Cleveland and Toronto last season. He missed more than three months in the middle of the season with a lingering calf injury, which also hampered him during spring training.
But when healthy, Donaldson has been one of the league’s most dangerous hitters.
He batted .270 with 33 home runs and 78 RBIs despite playing just 113 games during an injury-shortened 2017 season. He was a centerpiece of Toronto’s powerhouse offense that made the playoffs in 2015 and 2016, and he led the league with 41 home runs and 123 RBIs while winning the MVP in 2015.
The three-time All-Star selection followed that with 37 homers and 99 RBIs in 2016.
Donaldson spent his first four seasons with the Oakland Athletics and is a career .275 hitter with 182 home runs and 551 RBIs.