Balogun, 25, will remain at AS Monaco following a summer transfer debacle which saw his deadline day move collapse in the final moments.
The 25-year-old striker had appeared close to joining Everton in a £40M switch but even after the club submitted a sheet to allow for extra time to complete the deal, it fell through.
Balogun has scored 31 goals in 91 matches across all competitions for the Ligue 1 side and the striker starred for the USA at the World Cup over the summer which caught the eye of several clubs including Aston Villa and Barcelona.
Teamtalk revealed that Everton were left “shocked” and “disappointed” by the Balogun situation and there was was genuine disbelief that he reportedly rejected the side in the final moments.
Having sanctioned the departure of Beto to Fiorentina for around £15m and allowing Iliman Ndiaye to join Manchester City, it leaves Thierno Barry as their only senior striker in what is a huge worry for manager David Moyes.
The slight silver lining for the Toffees is that Jack Grealish returns to the Hill Dickinson Stadium on another season loan from City and he will add a new element in attack.
Speaking on the move, he revealed he was over the moon:
“I’m so happy. I think I’m at my best at everything in life, not just football, when I feel loved. That’s what the manager has given me, what my teammates have given me and especially what the fans have given me. Every time I see an Everton fan, it’s just pure love.
“It means a lot to me and hopefully I’ve made a few Everton fans happy. I had a perfect time here for the first six months, then I stayed around after I got injured. I’ve been watching all the Everton games in pre-season and since the season started. Now I feel ready to go.”