Jon Morosi of FOXSports.com notes that the deal is worth $9-10 million over the two years, with Nicholson-Smith adding that it is a straight two-year deal that does not include any options.
Davis, 33, will likely serve as the Tigers' fourth outfielder behind Torii Hunter, Austin Jackson and Andy Dirks next season after appearing in 108 games for the Blue Jays in 2013.
He hit .260 with 6 HR and 24 RBI while stealing 45 bases in that time, and joined Nate McLouth as the best fourth outfielder options for teams looking to add on the free agent market.
In addition to the Tigers, the Twins were reportedly in the mix to sign Davis right up until the end. The Red Sox and Orioles seemed to make sense for Davis, but reports on Monday indicated that the Orioles were no longer involved. Davis' return to the Jays was considered unlikely since the beginning of the offseason.
In eight major league seasons with the Pirates (2006-2007), Giants (2007-2008), Athletics (2008-2010) and Blue Jays (2011-2013), Davis is a lifetime .268 hitter with 27 HR, 224 RBI and 268 stolen bases.