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Carlo Ancelotti planning Everton January transfer talks

"In my opinion, it's a good squad," says Ancelotti; Everton set for "fantastic test" at Man City on New Year's Day

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Everton manager Carlo Ancelotti says he will discuss with the club's hierarchy after January 5 whether there is the opportunity to improve his 'good' squad

Carlo Ancelotti says he will meet with the Everton hierarchy after Sunday's FA Cup tie with rivals Liverpool to discuss potential January signings.

The transfer window opens on Wednesday and will be the first opportunity for the Italian to add to the squad he inherited this month after replacing Marco Silva as manager.

Ancelotti has begun his time at Everton well, leading them to two wins from his first two Premier League games in charge and 10th place in the table, but says he may still look to improve his options.

He said: "The market is not open yet - it opens tomorrow! There are a lot of rumours. That is normal. Everywhere in the world, it is like this. In Italy, it is the same.

"After the 5th of January, we are going to have a meeting with the club and we can talk if it is possible to try to improve this squad.

"In my opinion, it is a good squad. Some players I didn't know really well but now we are training, I have a better relationship and know them better.

"Maybe after the 5th of January, we can discuss this."

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Ancelotti: Pep is a genius

Before the Merseyside derby on Sunday and any potential transfer talks, Ancelotti first has to take Everton to Manchester City on New Year's Day.

Pep Guardiola embraces Carlo Ancelotti
Image: Ancelotti replaced Pep Guardiola as Bayern Munich manager in 2016

Despite City lying third in the Premier League, 14 points behind runaway-leaders Liverpool, Ancelotti says a trip to the Etihad is a good opportunity to see how far his team have come since he arrived.

"Manchester City will be a fantastic test for us to see where we are," he said. "It is a really strong team but we have confidence. The moment is good for us.

"We have to be happy to compete with the top team in England and also in Europe."

Ancelotti's views on City are rooted in his high opinion of "genius" Pep Guardiola, explaining: "Pep is a fantastic manager.

"I have a good relationship with him. Not a lot in games but we see each other sometimes at conferences. We have a lot of respect.

"At certain points, he is a genius because he is always trying to do something special on the pitch."

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