By ESPNSTAR.com staff
Nesta, who helped Italy to the World Cup in 2006, will officially join the roster upon receiving his International Transfer Certificate (ITC).
As per club and MLS policy, details of the deal have not been released but the club did confirm that the AC Milan legend will not be classified as a Designated Player.
The Impact received first priority for Nesta from the New York Red Bulls in exchange for allocation money.
"I'm very happy to be here," Nesta said in a statement.
"Despite some offers to continue my career in Europe, I was looking for a new challenge and wanted to play in MLS. Upon visiting my friend Marco (Di Vaio) to see him play his first game with Montreal, I met great people in this club. I really liked what I saw and I was convinced Montreal was where I wanted to be."
Montreal Impact president Joey Saputo added: "For a player who won the World Cup and played at the highest level for 20 years, he was extremely humble and it was easy to come to an agreement with him."
Nesta started his professional career in 1993 and played a total of 417 games in Serie A.
The Montreal Impact revealed that the Italian will wear the number 14 jersey.