Everton boss David Moyes refused to confirm the move on Friday, saying Grealish "was brilliant for us, a great boy" but stressed he remains a City player and that there is "no guarantee" Everton will get reach a deal.
The winger was linked with Sunderland earlier this month, but a deal never materialized for 30 year old who produced 2 goals and 6 assists in 22 appearances for the Toffees on loan last season.
Grealish is reportedly earning around £300,000+ per week at City but will take a pay cut as journalist Ben Jacobs revealed that the veteran wants a loan switch back to Merseyside.
“Everton closing in on re-signing Jack Grealish.
“Manchester City have preferred to sell all summer, but Everton now optimistic on a loan after offering to cover 90% of Grealish's wages.
“As revealed, Grealish decided he wants Everton over other offers.”
Grealish has come on as a second-half substitute in each of City’s first two games this season as manager Enzo Maresca advertises him to potential clubs.
Maresca spoke on Thursday and remained coy about the winger:
"Jack is here. Until the day he is, it my duty to try and help him to give us the best. In the next four, five days, we will see what happens. I speak with Jack almost every day."
Grealish joined City from Aston Villa for a club-record £100m fee in 2019, and has made a total of 159 appearances for the club. Now, with one year left on his deal, City are set to let him go after it looks like he has made his final appearance for the side.