Grabovski, 29, has four years left on a five-year, $27.5 million contract. As part of his buyout, he will be paid a total of $14.333 million spread over the next eight-years.
The Leafs reportedly had talks with the Detroit Red Wings, Anaheim Ducks and Calgary Flames about Grabovski, among other teams.
In 48 games with the Leafs this past season, Grabovski registered nine goals and seven assists for 16 points.
In 367 career NHL regular-season games with the Montreal Canadiens and Maple Leafs, Grabovski registered 94 goals and 123 assists for 217 points.
Drafted by the Habs in the fifth-round (150th overall) in 2004, Grabovski was traded to Toronto on July 3, 2008 in exchange for Greg Pateryn and a second-round pick.