According to David Ornstein of The Athletic, Carlo Ancelotti to Real Madrid is a done deal.
Everton arranged a meeting of their board at 3pm on Tuesday to discuss the situation of their head coach.
Ancelotti previously managed Madrid between 2013 and 2015 and took Everton to 10th in the Premier League last season.
Initial talks between the club and Italian coach began five days ago. The agreement on the termination of his contract with Everton is expected to be completed shortly.
He is expected to join Los Blancos on a three-year deal.