Panik will earn $2.85 million in 2020 if he's in the majors, according to Sportsnet's Ben Nicholson-Smith, who added that the deal also includes various performance bonuses.
The 29-year-old Panik split last season between the San Francisco Giants and New York Mets, slashing .244/.315/.336 with five home runs and 39 RBIs over 491 plate appearances.
His best years came with the Giants. He helped the team win the World Series as a rookie in 2014, made an All-Star appearance in 2015, and earned a Gold Glove at the keystone in '16.
Panik will presumably compete for a backup infield job in Toronto alongside veterans Breyvic Valera and Brandon Drury, as well as fellow spring invitee Ruben Tejada. Unlike those three infielders, who've manned multiple positions in the majors, Panik has played second base in all but one of his 645 career MLB games.
Cavan Biggio is slated to be Toronto's primary second baseman in 2020.