Raymond, who went to training camp on a professional tryout agreement citing the "opportunity" available, will reportedly make US$1 million.
"Based on Mason's play in the pre-season, we feel he fits in well with our group and will have a significant role on our team," general manager Dave Nonis said in a statement. "We agreed to terms over the weekend and look forward to him making a strong contribution this season."
The 28-year old is likely to slide in on the Leafs' third line. He had 10 goals and 12 assists in 46 games last season for the Vancouver Canucks.
Nonis said over the weekend that his familiarity with Raymond paled in comparison to how coach Randy Carlyle saw the winger fitting in. After strong showings in exhibition camps and practices, he has a roster spot locked up.