The 34-year-old joined the Canadian club in February after just one appearance for QPR in the Championship.
Cesar played in all of Brazil's games at the World Cup and was the hero in the penalty shootout win over Chile.
In a statement, Toronto said: "We'd like to thank Julio for everything he brought to our club. He made an immediate impact."
Cesar joined QPR from Italian side Inter Milan on a four-year deal in August 2012.
Former England goalkeeper Robert Green established himself as first choice during Rangers' promotion back to the Premier League and signed a two-year contract extension with the club in July.
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