The Australia international will join the Major League Soccer club pending receipt of his P-1 visa and International Transfer Certificate (ITC). The fee and length of contract have not been disclosed.
"I am very happy to start a new chapter of my career with the New York Red Bulls," Cahill told the official website. "As we have seen over the past few years, MLS has developed into a very competitive league with many talented players."
Cahill will join former Premier League players Thierry Henry and Teemu Tainio in New York, while former Barcelona defender Rafael Marquez also plies his trade at the Red Bull Arena. They are currently top of the Eastern Conference and the 32-year-old is desperate to help his side claim what would be their first title.
Cahill added: "I am impressed with what the Red Bulls are trying to accomplish in MLS and within American soccer and I am looking forward to this new challenge. I will do everything I can to help bring New York its first MLS Cup."
His excitement is matched by the club, who believe his achievements in the game will make him a real asset.
"We are absolutely thrilled to bring in a player of Tim's calibre to the Red Bulls," said New York Red Bulls general manager and sporting director Erik Soler.
"He is the technical, physical presence we have been looking to add in our team and he brings a wealth of experience to our club having played in some of the highest levels of international soccer. Tim is a proven leader both on and off the field and we believe that he can help us immediately in our quest to win the MLS Cup this season."
Cahill played 278 times for David Moyes' men and after just eight years at Goodison Park was sad to leave the north west.
"I also want to thank everyone at Everton, from the club to tremendous supporters," he added. "It has been a privilege to be an Everton player for the past eight years and it was a very difficult decision to leave. I will always support Everton and I wish the club the best of luck in the future."
Source: PA
Source: PA