"We're confident that process will be done in the next 24 hours," Bezbatchenko said Thursday at the MLS draft.
As a U.S. national team player returning to MLS, the 25-year-old forward would be subject to the league's allocation rankings. Toronto is sixth, behind Montreal, San Jose, Colorado, Chicago and Houston.
Altidore played for the New York Red Bulls from 2006-08 and was sold to Spain's Villarreal for a transfer fee of about $10 million. He failed to establish himself as a regular, spent time on loan to Xerez, Hull and Bursaspor, then was sold to the Netherlands' AZ Alkmaar.
He set the record for goals by an American in a European club season with 31 for AZ in 2012-13, then was sold to Sunderland. He has just one goal in 40 league appearances with the Black Cats and three goals in 50 appearances overall.