The Formula 1 legend, 49, was placed in a medically-induced coma following the horrific accident in December 2013 in the French Alps.
He has been receiving around-the-clock treatment at his family home near Switzerland’s Lake Geneva since September 2014.
But the German star is now expected to be moved to a luxurious gated estate on the Spanish island of Mallorca, according to local media.
The exclusive property on the estate of Las Brisa, in Mallorca’s Andratx region, boasts two large gardens and two swimming pools.
Village mayor Katia Rouarch said: “I can confirm officially that Michael Schumacher will come to settle in our town.
“Everything is being prepared to welcome him.”
The plush mansion was bought by Mr Schumacher’s wife Corinna, 49, for nearly £27 million (€30 million) last month.
It was put on sale by business mogul and Real Madrid president Florentino Perez after the death of his wife Mari Angeles Sandoval.
Official updates from the Schumacher family have been few and far between since the Formula 1 hero’s skiing accident in 2013.
It has been reported he is looked after by a 15-strong medical team, with his care costing as much as £115,000 per week.
In a message to his fans in March, Mr Schumacher’s manager defended the decision not to reveal details about his health.
Sabine Kehm told a German newspaper: “What can be said is that the family really appreciates the empathy of the fans.
“The people really do see and understand his health situation is not to be shared in the public eye.”
Mr Schumacher was one of the most successful F1 drivers in history, winning seven world championships during his career.
His son Mick, 19, has followed in his footsteps by becoming a Formula 3 driver, and hopes to make the step up to F1 one day.
The teenager claimed his debut Formula 3 victory at Spa-Francorchamps, a famous circuit in the Belgian Ardenne, last month.
Speaking after the victory, he said: “My goal has always been F1 and it’s still my goal. With one step after the other, we move forward.”
Additional reporting by Gerard Couzens