Latham is set to link with Worcester after one final season with the Queensland Reds in the Super 14 competition starting in February.
Latham confirmed The Courier-Mail's report that he would be playing in England.
The Australian Rugby Union are yet to confirm whether Latham's long service to the Wallabies will earn him an early contract release, but it's expected he will be available for Australia's domestic Tests next month, including the first Tri-Nations series in which the Wallabies would be coached by Kiwi Robbie Deans.
Latham, 32, will front a media conference in Brisbane.
"I can confirm that I have signed," Latham told AAP.
Latham has been the best linebreaker for both Queensland and Australia in recent years and the Reds will be keen for him to play the whole Super 14 season after missing the entire Super 14 program this year season due to a knee reconstruction.
Latham has played 110 games for Queensland.
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