He has agreed a four-year deal with the Portuguese giants and will move at the end of the season.
Porto will pay Tenerife €1m up front and Tenerife be entitled to 15 per cent of a future transfer fee.
Porto have been negotiations with Tenerife over a deal for Ayoze since November 2013, and they've beaten the likes of Arsenal and Real Madrid to his signature.
They only thing left to agree is the exact details of future compensation payments depending on how successful Ayoze becomes in the domestic and international arena.
Currently plying his trade in the second division of the Spanish football pyramid, Ayoze has bagged 10 goals in 25 games so far.
Arsenal were reportedly scouting the 20-year-old over the January transfer window but in the end Arsene Wenger only ended up with one signing - the deadline day capture of injured midfielder Kim Kallstrom.
A report had claimed Arsenal had opened talks with Tenerife for Ayoze, but it looks like they've lost out to Porto.