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The pair are set to fight live on Netflix in JulyCredit: https://twitter.com/netflix
Tyson, 57, reigned as the undisputed heavyweight king between 1987 and 1990.
Paul also confirmed the bout will be broadcast live on Netflix from the AT&T Stadium in Arlington, Texas.
The 80,000-capacity arena, nicknamed the Death Star, is home to the Dallas Cowboys and is the third biggest NFL stadium.
Long-time Paul rival KSI has joined boxing fans in reacting to the news on social media.
He wrote: “50+ years old. No one wanted this… So sad to see man…”
Dillon Danis, who fought Paul’s older brother Logan last year, also wrote: “You’re fighting someone who was born in 1966. Have some shame.”
Former UFC champion Michael Bisping added: “You should be ashamed of yourself. And the biggest joke is you don’t even slightly realize why.”
Fans agreed, with one commenting: “Everybody involved in making this fight fight happen should go to prison.”