Carlo Ancelotti has reportedly opened talks with Everton about their vacant managerial role, with the Italian set for further negotiations this week.
The former AC Milan, Real Madrid and Chelsea coach was fired by Napoli last week and is said to be keen on a return to the Premier League, where he managed Chelsea between 2009 and 2011.
According to The Guardian, talks have been held but interim manager Duncan Ferguson will remain in charge for Everton's EFL Cup tie with Leicester City on Wednesday.
Marco Silva was sacked by Everton on December 6 after a 5-2 defeat to their bitter local rivals Liverpool, which saw the Toffees stuck in the relegation zone.
Everton have picked up four Premier League points since Silva's departure, with Ferguson's side securing a 3-1 win over Chelsea and a 1-1 draw with Manchester United.
The Toffees' next match is against Arsenal, who are also without a manager after they dismissed Unai Emery last month.
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