The Slovenian shot-stopper, who made three appearances at the 2010 World Cup, will sign for the Nerazzurri in a move that looks likely to force Julio Cesar out of the exit door
The 27-year-old goalkeeper, a Slovenia international, will join the Nerazzurri for €11 million, with Italy Under-21 international Marco Faraoni moving in the opposite direction on a co-ownership basis.
"The signature is the only thing left for the transfer to happen," Pozzo told reporters. "An agreement has been reached between our club and Inter.
"But I cannot yet say that it is official."
Handanovic, who signed for Udinese in 2004, has been a key player at the Stadio Friuli in recent years, after initially spending time on loan at Treviso, Lazio and Rimini up until 2007.
The move is likely to pave the way for the exit of Julio Cesar, who has struggled for fitness and form in his last two seasons at San Siro.
The 32-year-old custodian's wife seemingly confirmed the reports on Tuesday, accusing the Nerazzurri of being disrespectful towards her husband, who has been at the club since 2006.