The club announced a deal to loan Plata to his former Ecuadorian club, LDU Quito, has been finalized on Wednesday.
Plata has two more years on his Major League Soccer contract but will be on loan to Quito for the next six months.
Toronto FC expects the player to return to Canada for the 2013 MLS season.
The five-foot-two, 135-pound forward angered Toronto FC coach Paul Mariner last weekend after tweeting he was leaving the team.
After Plata missed a practice on Tuesday, Earl Cochrane, Toronto's director of team and player operations, said the club was discussing its options regarding potential discipline with MLS.
Plata, who's currently sidelined with a hamstring injury, scored three goals and had five assists in 26 games (21 starts) with Toronto FC last season.