Carlo Ancelotti has reportedly reached an agreement to terminate his Napoli contract ahead of his expected return to the Premier League with Everton.

The 60-year-old has been strongly tipped to take over as the next manager of Everton, who sacked Marco Silva two weeks ago.

Ancelotti has himself been out of work since leaving Napoli nine days ago, but Sky Sport Italia suggests that he could be appointed by the Toffees before the end of the week.

Former Chelsea boss Ancelotti is said to have arranged to meet with the Italian club's officials to sign documents that will officially conclude his time at Stadio San Paolo.

Once that has happened, he will be free to put pen to paper with Everton on an expected four-and-a-half-year deal.

Everton confirmed on Thursday that interim boss Duncan Ferguson will remain in charge for Saturday's home meeting with Arsenal.