Blue Jays general manager Alex Anthopoulos has not commented on the news, but the signing was confirmed by Cordero's agency, Reynolds Sports.
The 28-year-old Cordero was limited to just nine Major League games in 2010 as he worked his way back from labrum surgery in his right shoulder. The California native also made 34 appearances in the Minor Leagues, posting a 1-2 record with a 3.03 ERA and 36 strikeouts over 35 2/3 innings.
Cordero's best season came in 2005, when he recorded 47 saves with a 1.82 ERA over 74 1/3 innings with the Washington Nationals. He was an All-Star that season and finished fifth in voting for the National League Cy Young Award.
Cordero will compete for a spot in the bullpen, and if he is able to regain some of his old form, it's possible he could enter the competition for the closer's role. Over his seven-year career, Cordero has a 20-15 career record with a 2.89 ERA and 128 saves.