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The agreement will create another way for consumers to buy and register domain names.
In its first-quarter earnings report on 25 April, VeriSign said that it had trouble selling domain names and that the lack of sales had hurt its earnings.
VeriSign has begun to sell .bz domain names at a site on eBay and has already solicited a number of bids on names such as debt.bz and country.bz.
The .bz is the country code for Belize. VeriSign said it is using the .bz domain names to test its new system with eBay.
VeriSign will also provide authentication services as eBay signs up new sellers. The site already has 46 million registered users.
"As both the volume and value of goods sold over the Internet continues to grow, it becomes even more critical for users to feel a sense of trust in their online transactions," said Anil Pereira, executive vice-president and general manager of VeriSign's enterprise and service provider division.
"Validating the identity of sellers on eBay provides added comfort for site members and lays the foundation for both higher value transactions as well as new service offerings to proliferate."
The financial terms of the agreement have not been made public.
This is the second such agreement that eBay has launched in two days. Yesterday, eBay said it would create a special marketplace for consulting firm Accenture to sell the surplus inventory of its clients directly to eBay users.