Carlo Ancelotti will be confirmed as Everton's new permanent manager before the weekend, Sky Sports News understands.
Sky Sports News has learned that Ancelotti, sacked by Napoli last week, will be in the stands at Goodison Park for the Premier League fixture against Arsenal on Saturday, and will be officially presented to the media on Monday.
Duncan Ferguson, who has achieved victory over Chelsea and a draw at Manchester United so far, will continue his role as interim boss for the Arsenal game.
Ancelotti 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 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.
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's managerial history
|Juventus||1999-01||55%||1 Intertoto Cup|
|AC Milan||2001-09||56%||1 Serie A, 1 Coppa Italia, 2 CL, 1 Club WC|
|Chelsea||2009-11||61%||1 PL, 1 FA Cup|
|PSG||2011-13||64%||1 Ligue 1|
|Real Madrid||2013-15||75%||1 CL, 1 Copa del Rey, 1 Club WC|
|Bayern Munich||2016-17||70%||1 Bundesliga|
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.
Sky Sports' Jamie Carragher on Monday Night Football…
'I have to take my hat off to them if Everton pull this off.
'The supporters have been complaining a lot about managers they've had in the past and why not, rather than spending a lot of money on the pitch, give them one of the real elite managers on big-money wages. It is wise to bring someone in who's a real top football coach.
'In Ancelotti, you are getting someone who is right at the top of football. This is a man who Evertonians, if it comes off, can say has won more than Jurgen Klopp and has won Champions Leagues. It gives them something to buy into with that manager.
'Still, I can't change my view that whether it was Arsenal or Everton, I'm not sure he is the man for these types of jobs. I think that no matter how successful Ancelotti has been in the past he's never really had this type of job or certainly excelled in this type of role, but as I've said he hasn't had it before.'
Analysis: Major statement from Everton
Sky Sports News' Vinny O'Connor...
"This would be a major statement from Everton. Their ambition is to win trophies, and Ancelotti has won 15 in his career. He falls into the bracket of world-class manager that Farhad Moshiri wants.
"Ancelotti feels he will get the right sort of support at Everton, and it's a project he is interested in and that he can get his teeth into.
"It would be the kind of appointment among Everton fans that would be hard to disagree with. While Ancelotti has got great experience, he can learn from the passion that Duncan Ferguson has ignited on the touchline at Everton."