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."
Cheyrou arrives in the MLS highly credentialed, having won titles with all three clubs in France.
After helping Lille earn promotion to the French top-flight by winning Ligue 2 in 1999-2000, Cheyrou tasted Coupe de France success with Auxerre in 2005.
He then went onto win Ligue 1 in 2009-10 as well as two Coupe de la Logue titles in 2010 and 2012 with Marseille.
"I'm very excited to sign for Toronto FC," Cheyrou said. "I cannot wait to wear the jersey and join my new team-mates."
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