TuttoMercatoWeb says Toni has agreed on a deal with Valencia and will sign a three-year contract in January.
Toni has been suspended from the Bayern Munich first-team following a spat with coach Louis van Gaal, says Bild.
Toni told Rai 3 on Tuesday: “I have had problems with van Gaal for four months. To say the least our relationship has terminated.
“I would like a lot to be able to return to Italy to score those goals that would allow me to return to the Italy squad.”