The hard-throwing right-hander won a career-high 19 games last season while leading the majors in strikeouts, innings and starts.
Verlander, 26, has a no-hitter under his belt and won the American League Rookie of the Year award in 2006. His outstanding 2009 campaign came a year after tying for the most losses in the Majors.
The deal is expected to be announced Thursday and will mean the two parties will avoid arbitration. Verlander was eligible to become a free agent in 2001.