Carlo Ancelotti is expected to be confirmed as Everton's new permanent manager by the end of this week.
The Italian has been offered a four-and-a-half-year contract and is set to take charge of his first game against Burnley on Boxing Day, according to Sky in Italy.
The 60-year-old is set to be assisted by his son Davide Ancelotti and Duncan Ferguson, having been given assurances that there will be money to spend in the January transfer window.
Sky in Italy are reporting that Ancelotti will travel to Naples to end his contract with Napoli and that is expected to be resolved by Wednesday.
Sky Sports News broke the story on Monday that Ancelotti reached an agreement in principle to become Marco Silva's successor following talks on Merseyside earlier in the day.
The club insisted on Monday that they had not yet made a contract offer to any candidate involved in the "process" but had held meetings with a number of them.
They also confirmed that caretaker boss Ferguson, who has achieved victory over Chelsea and a draw at Manchester United so far, will continue for their Carabao Cup quarter-final against Leicester on Wednesday.
Ancelotti swiftly emerged as the primary target for Everton's majority shareholder Farhad Moshiri and chairman Bill Kenwright after he was sacked as Napoli manager last week.
Ancelotti won the Premier League, the FA Cup and the Community Shield during his tenure at Chelsea between 2009 and 2011.
He has also lifted three Champions Leagues as well as league titles in France, Italy and Germany.