The attacking midfielder arrives on a free transfer from Spain's Malaga.
The 28-year-old joins Scottish striker Kenny Miller and Argentine midfielder Matias Laba as designated players on the Whitecaps roster.
Morales arrived in Vancouver on Tuesday night and was slated to train Wednesday with the Whitecaps.
He will wear No. 77.
The Chilean spent the last two seasons in La Liga after spending three seasons in Croatia with GNK Dinamo Zagreb.
Prior to that, Morales played five seasons in Chile.
The five-foot-11, 170-pounder has represented his country 11 times, scoring three goals.
The Whitecaps open the 2014 MLS season on Saturday against the visiting New York Red Bulls.