We have investigated the transmission and reflection properties of structures incorporating left-handed materials with graded index of refraction. We present an exact analytical solution to Helmholtz' equation for a graded index profile changing according to a hyperbolic tangent function along the propagation direction. We derive expressions for the field intensity along the graded index structure, and we show excellent agreement between the analytical solution and the corresponding results obtained by accurate numerical simulations. Our model straightforwardly allows for arbitrary spectral dispersion.