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Cheyrou, 33, had been without a club since his Marseille contract was terminated at a tribunal in October after seven seasons with the Ligue 1 side.
The former Lille and Auxerre man joins high-profile recruits and designated players Sebastian Giovinco and Jozy Altidore, as well as Poland international centre-back Damien Perquis in Toronto.
"Benoit's vision and his ability to distribute the ball are two very distinct qualities that have made him such a successful player throughout his career, both domestically in France and in European competition," Toronto FC general manager Tim Bezbatchenko said in a club statement.
"He has a wealth of experience and success and is another important piece that complements the ones we currently have in place. We are very excited to bring him to Toronto FC."
"I'm very excited to sign for Toronto FC," Cheyrou said. "I cannot wait to wear the jersey and join my new team-mates."
