The 20-year-old spent last season on loan at the Stadio Marc'Antonio Bentegodi, and scored eight goals in 33 Serie A appearances.
Porto announced last week that the Italian club had opted to purchase the player after he helped them finish10th in their first season back in the Italian top flight.
And Verona announced on Tuesday that Iturbe, who has reportedly attracted attention from some of Europe's elite clubs, will move to Italy on a permanent basis.
"Hellas Verona announces that it has exercised the right of redemption, outright, for the player Juan Manuel Iturbe from Porto," Verona said in a statement.
"JMI15 is all yellow and blue!"
Iturbe made just nine first-team appearances for Porto after joining from Paraguayan outfit Cerro Porteno in 2010.
