Houston have confirmed the transfer of Giles Barnes to Vancouver and they have also negotiated a sell-on fee should the midfielder be loaned or sold to a club outside the MLS.
The Dynamo have also gained first refusal on Costa Rica defender Keynor Brown as part of the deal.
London-born Barnes made 131 appearances for the Dynamo and scored 34 goals for since arriving in Houston in 2012 and he leaves the club on good terms.
"We'd like to thank Giles for all of his contributions both on and off the field during his time in Houston and we wish him well," said Dynamo vice president and general manager Matt Jordan.
JORDAN: "We'd like to thank Giles for all of his contributions both on and off the field ... and we wish him well." pic.twitter.com/ya3B32Oa2T
- Houston Dynamo (@HoustonDynamo) July 31, 2016
"We felt this move was in the best interest of our club moving forward, providing us with valuable roster and budget flexibility while bringing in valuable assets both in the short and long term.
"This move also provides a greater opportunity for our younger attacking players to make an impact this season."
The 27-year-old Barnes has 18 caps for Jamaica where he has netted three international goals.