Ottawa won't extend Rupert a qualifying offer, Murray Pam of The Hockey News reports.
Rupert was traded along with Dion Phaneuf and three others to the Senators on Tuesday for Milan Michalek, Colin Greening, Tobias Lindberg and a draft pick.
Toronto has signed Ryan Rupert a three-year, entry-level contract.
In his fourth season with the London Knights, he broke out with 21 goals and 73 points in 68 games. He's currently playing in the second round of the OHL playoffs. Rupert was chosen in the sixth round of the 2012 NHL Entry Draft by the Maple Leafs.
Ryan Rupert had a goal and an assist in the London Knights' 3-2 win against the Kitchener Rangers.
Rupert has six goals and 30 points in 31 OHL contests this season. He's riding a nine-game point streak.