Citing an unnamed league source, Bengals.com said Owens was expected to be present when the team's training camp opens Thursday at Georgetown College. The report said the club and agent Drew Rosenhaus had concluded negotiations Tuesday.
The Cincinnati Enquirer reported the deal is worth $2 million with another $2 million available through incentives.
Bengals wide receiver Chad Ochocinco appeared to confirm the signing in a Twitter post, writing, "Terrell Owens is officially a Cincinnati Bengals, Cincy let's welcome him with open arms, it's on now!"
Reports had indicated that both the Jets and Rams were vying for the controversial Owens, 36. He caught 55 passes for 829 yards and five touchdowns last year in his lone season with the Buffalo Bills.
Owens has made headlines in the past for public locker room disagreements, but also has consistently been one of the NFL's top receivers.