"He is engaged and very happy," a source said.
As of right now there is no known wedding date.
Hogan's engagement comes just fives months after he finalised his divorce from ex-wife Linda Bollea, after 25 years together.
After the trial ended, Linda admitted she would always love the former WWE grappler - with who she has two children, Nick, 19, and Brooke, 21 - and planned to stay in contact with him.
"The war is over," she said. "I still love him. He's the father of my children. My husband took the big step of stopping this escalating war by making the decision to put this behind us. I am grateful to him for realising that our family can be happier and stronger by working together. He and I both love our family dearly and look forward to working together to make it stronger than it has ever been. My family means the world to me."
The former couple are currently on speaking terms, but the initial stages of their divorce were bitterly fought and Hogan, 56, revealed he had thought about suicide.
In his autobiography, 'My Life Outside the Ring', Hulk wrote: "There were times when I thought that a whole bottle of pills would go down easy."
"Then I noticed the gun in my hand. I was careless with it... I kept my finger pressed right to that trigger... and if I moved that finger an inch in the right direction I would have blown my brains out."