Carlo Ancelotti has agreed a deal in principle to become the next Everton manager, according to Sky Sports.

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Everton are on the lookout for a new permanent manager to replace Marco Silva, despite Duncan Ferguson taking points off Chelsea and Manchester United during his interim spell in charge.

Sky say that the Italian – who was dismissed by Napoli earlier this month – held talks at Goodison Park on Monday afternoon, and the outcome appears to have been positive.

Meanwhile, The Telegraph insist that Ancelotti was not in fact at Goodison, but spoke with Everton officials last week. The club are said to be optimistic over reaching an agreement, as Ancelotti seeks the right conditions to take over.

It is claimed that Ferguson would remain part of the coaching setup under Ancelotti.