The 34-year-old, who was included in the latest Brazil squad on Tuesday, has made just a single appearance for his parent club this season and joins the MLS outfit until the end of the season.
With the 2014 FIFA World Cup in his home country just four months away, Cesar will be keen to get some game time under his belt as he bids to remain in contention for a call-up.
"I'm really happy to come to Canada," said Cesar. "I would like to thank to Toronto FC.
"I'm really excited to start work with my new colleagues at this new club."
"When I accepted to come here I spoke to Scolari and Parreira beforehand," he continued. "Parreira knows the league well and he said 'if you go there you will play in a tough league'.
"I don't have doubts to come quickly."
And the New Zealander joked the move only came about "because Julio's saved my arse so many times".
He added: "It was an absolute no-brainer when it came about."
