The 33-year-old Hester plans to sign with the team on Sunday, a league source told ESPN's Adam Schefter.
Hester, who worked out for the Ravens for a second straight day on Saturday, holds the NFL records with 20 return (punt and kickoff combined) touchdowns and 14 punt return touchdowns.
A second-round pick in 2006 out of Miami (Fla.), Hester spent his first eight NFL seasons with the Chicago Bears, including two 50-plus catch seasons during an attempted conversion to a regular wide receiver role.
Hester signed with the Falcons in 2014 and scored touchdowns rushing, receiving and on a punt return. He was limited to five games in 2015 because of toe surgery. He was released by the Falcons on July 26.