Caboclo, an 18-year-old Brazilian forward, is under contract through the 2015-16 season, with two team option years to follow. Financial terms of the deal Wednesday were not disclosed.
The Raptors selected Caboclo with the 20th overall pick of the draft.
The 6-foot-9, 205-pound Caboclo was named MVP at the 2013 Basketball Without Borders Americas. He played in 16 games this past season with Pinheiros in Sao Paulo, where he contributed 4.9 points and 3.1 rebounds. In three Liga Americas games, he averaged 8.0 points, shooting 71 percent from the field.
Caboclo and the Raptors open their preliminary round at the 2014 NBA Summer League in Las Vegas on Friday against the Los Angeles Lakers.