"I'm going to Milan, where I have to pass medicals and sign for Verona," the 25-year-old told local media. He is expected to join the 1985 Italian champions on a two-year contract.
Mihaylov, capped 26 times by the Balkan country, joined Liverpool in 2007 from Levski Sofia and has spent three seasons on loan at Twente before signing a permanent deal with the Dutch club in 2010.
In 2011, Mihaylov was named Bulgaria's footballer of the year, breaking the domination of Fulham striker Dimitar Berbatov who had won the award four consecutive times.
The goalkeeper is the son of Bulgarian Football Union president Borislav Mihaylov, who was himself capped 102 times.
Verona, who have already signed former Italy striker Luca Toni in an attempt to bolster their squad, are back in Serie A for the first time in 11 years after finishing second in Serie B behind Sassuolo.
(Reporting by Angel Krasimirov; Editing by Clare Fallon)
