Terms of the deal weren't revealed, but the Cincinnati Enquirer reported it is worth $11.5 million, including $4.25 million this year and $7.25 million in 2014.
The 25-year-old right-hander compiled a 14-4 record with a 3.48 ERA in 33 starts last season for the National League Central champs, including back-to-back complete games in June.
Over his four-year career with San Diego and the Reds, Latos is 41-33 with a 3.41 ERA in 105 games.
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