James Rodriguez could agree a deal to join Everton from Real Madrid by Wednesday.
An agreement between the two clubs over the transfer of James could be less than 48 hours away, with the forward expected to undergo a medical later this week.
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The 29-year old, who earns around £200,000 a week at the Bernabeu, has been deemed surplus to requirements by Real boss Zinedine Zidane.
The deal would see the Colombia international join forces with Carlo Ancelotti for a third time, having played under him at Bayern Munich and Real Madrid.
James struggled for games last season, making just 14 appearances for Real Madrid in all competitions during 2019/20.
Last month, Ancelotti was asked about the possibility of signing him, but the Everton boss played down the prospect that any genuine approach had been made for the playmaker.
"James Rodriguez? I like, I like a lot as a player," said Ancelotti.
"When I left Madrid, James Rodriguez followed me to Munich. He came to play.
"But he followed me as a rumour to Napoli and now he is following me here to Everton as a rumour.
"I have to be honest, I like him a lot. But he is a Real Madrid player. I think he will still be a Real Madrid player."
James has 12 months left on his Madrid contract and is understood to be keen to make the move to Goodison Park on a three-year deal.
Meanwhile, Everton have agreed a deal with Napoli to sign midfielder Allan, while the club remains in talks with Watford over signing midfielder Abdoulaye Doucoure.
Defender Michael Keane has also signed a new five-year deal at Goodison, until 2025.
Hunter: James would welcome Everton move
Spanish football expert Graham Hunter on Sky Sports News:
"Carlo Ancelotti and James had a very good relationship in James' first season at Real Madrid.
"He is not wanted by Real; they desperately need to cut the numbers in the squad, they desperately need to cut the wage bill and they desperately need income.
"The idea of playing at Everton is something he would welcome. He was due to leave Real Madrid at the beginning of last season but it was blocked and he was angry. He's ready to play and still thinks he's world class. If Carlo Ancelotti can get him, he's the type of footballer that the Goodison faithful will be yearning to see regularly."
With Everton closing in on what would be an eye-catching transfer that would see the enigmatic midfielder join forces with Carlo Ancelotti for a third time, we look back on the curious case of the Colombian and what might lay ahead.
Where did it all go right - and then wrong - at Real Madrid? Why has so much changed since James won the Golden Ball at the World Cup in 2014?
All the latest news, analysis and rumours from the window in one place.
The summer transfer window will run for 10 weeks from July 27 and close at 11pm on October 5.
A domestic-only window for trades between the Premier League and EFL then runs from October 5 and closes on Friday, October 16 at 5pm. Follow all the news and analysis on Sky Sports News and across Sky Sports' digital platforms, including with our dedicated Transfer Centre blog.