Toronto has acquired Jozy Altidore from Sunderland of England's Premier League and signed the American forward to a contract as a designated player under Major League Soccer's rules.
Toronto also said Friday it has agreed to transfer forward Jermaine Defoe to the Black Cats, just one year after obtaining him from Tottenham.
The 25-year-old 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 had just one goal in 40 league appearances with the Black Cats.
The 32-year-old Defoe had 12 goals in 21 games with Toronto.