It's a one-year contract for the league minimum of $786,000, reports The Athletic's Shams Charania, citing sources.
McCaw cleared waivers Wednesday afternoon after the Cleveland Cavaliers released him Sunday and was free to sign anywhere. The third-year shooting guard signed a non-guaranteed, two-year, $6-million offer sheet with the Cavs in late December. His previous team, the Golden State Warriors, declined to match.
McCaw turned down the Dubs' qualifying offer last summer and had held out for the first part of the season. The NBA is reportedly investigating whether the Cavs used the deal to circumvent the salary cap.
He played three games for Cleveland, scoring a total of five points. Signing him doesn't address the Raptors' need for more shooting - McCaw is a career 41.8 percent shooter from the floor, including 29.5 percent from deep.
McCaw is in his third season and will thus become a restricted free agent again next summer. That means the Raptors will be able to match any offer he receives.