The striker, also a target for Roma following his exceptional displays in 2014-15, will move to San Siro pending the successful completion of a medical.
Both Milan and Europa League holders Sevilla confirmed the transfer on Thursday, with the Liga club wishing Bacca "all the luck in the world" for his new venture.
Bacca is due to undergo medical tests over the coming days in Italy.
The former Club Brugge forward scored 49 goals and notched 22 assists in 108 appearances for Sevilla as the Andalusian side secured back-to-back Europa League titles.
Milan are expected to have paid the full €30 million release clause in Bacca's contract to secure his signature, though neither club have confirmed the fee.
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