A source told MLB.com's Jonathan Mayo that Davis agreed to a bonus of $1.75 million. The assigned pick value for the No. 17 selection, when Davis was taken, is $2 million.
Davis spent this past season with Stone County High School in Wiggins, Miss., where he made a name for himself with an ability to hit for gap power while also possessing blistering speed on the basepaths.
"I bring speed, solid hitting, and I'm an all-around player," said Davis, who compared his game to that of Atlanta's Michael Bourn.
"I'm basically a line-drive hitter, and I try to keep the balls down on the ground if I can. I've got some pop, I'm kind of sneaky though."
Davis hit .373 (25-for-67) with four doubles, seven homers and 27 RBIs in 26 games for the Tomcats this season. Terms of the deal were not disclosed, but the recommended slot value was $2 million.
The 5-foot-11, 170-pounder is the son of Wayne Davis, who spent four years in the Blue Jays' Minor League system. The elder Davis hit .223 with 48 home runs and 165 RBIs over that span and had some words of advice for his son about the Toronto organization.
"He has been a big influence on my game," D.J. Davis said. "He's told me everything he knows, and I've kept working with him throughout my career.
"He said that [the Blue Jays are] a good organization to be with. Work hard and they're going to teach you everyting you want to know about the game."
The Blue Jays have now reached an agreement with 11 of their picks taken in the first 10 rounds of the Draft. The only three who remain unsigned are right-hander Marcus Stroman (22nd overall), left-hander Matt Smoral (compensation round) and right-hander Chase DeJong (2nd round).
Smoral indicated to MLB.com last week that he intended to sign with the Blue Jays and was close to an official agreement, while DeJong told MLB.com he was "95 percent" sure he would sign a deal instead of going to play NCAA baseball.
Toronto also reached an agreement with seven non-drafted free-agent pitchers. Right-handers Justin James (Ave Maria University), Justin D'Alessando (University of America), Robert Joseph Brosnahan (University of Michigan), Charles Ghysels (Truett McConnell College), Tim Nicolas Brechbuehler (Louisburg Community College), and left-handers Kyle Anderson (Cal Poly San Luis Obispo) and Joseph Spano (University of Notre Dame) all signed.