Everton have been beaten to the signature of Manchester United winger Memphis Depay by AC Milan, according to a report.
The Netherlands international has been told by boss Jose Mourinho that he is free to find a new club this month should his valuation - around £25m - be met.
Everton were thought to be the frontrunners to sign the 22-year-old, though the Red Devils' reluctance to let him to leave on an initial loan deal is said to have put them off making an official bid.
Italian publication Calciomercato claims that Depay is now in discussions with Milan over a January switch, having been restricted to just four league appearances so far this term under Mourinho.
Depay, who made the move to United from PSV Eindhoven in May 2015, is expected to be joined by Morgan Schneiderlin in leaving Old Trafford in the coming weeks.
