Former Liverpool manager Rafa Benitez has agreed terms with Everton over a three-year contract.

The Daily Mail reports Benitez is the new manager of Everton after agreeing a three-year deal.

It is a historic appointment by Farhad Moshiri, Everton's major shareholder, as Benitez becomes the first man to have managed both Liverpool and Everton since William Edward Barclay in the 1890s.

The Spaniard, 61, has had numerous meetings with Moshiri, including one in Italy last week, and has now finalised a deal to become Carlo Ancelotti's successor.

There has been no official announcement by the club but that will happen on Wednesday.

Benitez, a manager who has won the Champions League and the Europa League, has been working in the background since he first spoke to the Iranian billionaire three weeks ago.

He will be joined by his long-time ally, Paco de Miguel, who will become Everton's fitness coach.