Davis, who revived his career in his first season with Cleveland, was one of the crucial players who helped get the AL champions to the World Series. The 36-year-old led the AL with 43 steals and helped solidify the outfield when All-Star Michael Brantley wasn't able to come back from shoulder surgery.
The deal was earlier reported by Yahoo! Sports.
Davis struggled in the playoffs, but he provided a magical moment in Game 7 of the Series. Davis connected on a two-run homer off Cubs closer Aroldis Chapman to tie it 6-6 in the eighth inning before the Indians lost 8-7 in 10 innings. Cleveland failed to win its first World Series title since 1948.
Even though a qualifying offer wasn't extended to Davis, Indians president Chris Antonetti said the team had strong interest in re-signing him. Davis finished the year with 12 homers and 48 RBIs in 454 at-bats.