Manchester City boss Manuel Pellegrini is emerging as favourite for the Everton job.

The Sunday Mirror says Pellegrini has told his agent that he wants to continue in the Premier League.

Everton could be in the market for a new manager, with pressure growing on Roberto Martinez, while Quique Sanchez Flores will have his future at Watford assessed at the end of the season.

Pellegrini will now walk away from the Etihad with a £4million pay-off.