With new signing James Rodriguez having made the wide-right spot his own thanks to an excellent start to his Goodison Park career, Walcott’s first-team chances look like being limited.
The 31-year-old is in the final year of his contract, and while a return to Saints is thought to be his preferred choice, he has also been linked with Crystal Palace, West Ham, Fulham and Newcastle.
Norwich announced they had received a club-record fee for Godfrey, whose deal ties him to Everton until the end of June 2025.
The 22-year-old made 30 appearances for relegated Norwich in the Premier League last season, and had been linked to a number of top-flight clubs this transfer window.
The centre-back completed a medical with the Premier League leaders over the weekend before the deal was announced on Monday morning.
Fulham are pushing to sign Chelsea midfielder Ruben Loftus-Cheek on loan, the PA news agency understands.
Manager Scott Parker still wants to bolster his defence ahead of the transfer deadline, but is also keen to add England star Loftus-Cheek to the Craven Cottage ranks.
The 24-year-old has only featured once for Chelsea this term, in the 3-1 Premier League win at Brighton on the season’s opening weekend, and has spent the last 16 months battling a torn Achilles tendon injury.
The 20-year-old has struggled to make an impact since joining Spurs for £25million last summer and has been sent out to get some game time.
Wolves defender Ruben Vinagre has completed a season-long loan move to Olympiacos, with an option for the Greek champions to make the deal permanent.