As he was naming his squad for the forthcoming clash with South Africa, Brazil coach Luiz Felipe Scolari stated that Cesar - who was called up to the squad - was signing for Toronto.
"Julio Cesar has been called, but he has to present himself to his new club Toronto, the paperwork must be done soon," he said.
However, the Canadian-based MLS outfit have refused to confirm a deal is in place for the 34-year-old. Head coach Ryan Nelsen confirmed that talks had taken place, but insisted a transfer was not yet complete.
"At the moment, I can't really comment because nothing has been finalised," he told O Globo.
"I haven't spoken to Julio Cesar for a couple of days, so I don't know about what Scolari said.
"It is something that would be really nice for the Toronto fans and the community to have a player of his skill, expertise and experience.
"I might have to give Scolari a call to see if it has happened," he joked.