The 30-year-old was completely frozen out by former Man City boss Pep Guardiola, four years after signing him from Aston Villa for £100 million.
Grealish was shipped out on loan to Everton last summer, and he had some good moments, scoring two goals and providing six assists in 22 games before injury cut his season short.
According to David Ornstein, Everton have reached an agreement with Man City to bring the winger back to the club for 2026-27.
It’s understood that there was plenty of interest in Grealish this summer, including Sunderland, but Everton were always his first choice.
Grealish's Man City contract is set to expire at the end of the season.
The agreement comes after reports revealed City had reached an agreement in principle for Everton’s Iliman Ndiaye for £65 million.