The MLS club, however, says the report is "inaccurate."
The English tabloid says the 31-year-old Defoe has agreed to a four-year deal with Toronto worth 90,000 pounds (C$155,235) a week. That equals $8.07 million a year, some $3 million a year more what top earner Clint Dempsey of Seattle earned this season in MLS.
In need of goals and wins, Toronto has publicly sets its sights on two designated player strikers. Defoe, a former teammate of Toronto manager Ryan Nelsen during his playing days at Spurs, has been touted as one of the possible acquisitions.
Defoe has fallen behind Spain's Roberto Soldado, who cost Tottenham 26 million pounds ($44.8 million), in Spurs' single-striker formation.
The Mirror says the Toronto deal involves a transfer fee of six million pounds ($10.3 million).