Crystal Palace are eyeing a deal for Everton midfielder James McCarthy, according to the Daily Mirror.

The Toffees have reportedly slapped a price tag of £20million on their player, but the Eagles are confident that the Goodison Park outfit will drop their asking price before Wednesday's deadline.

The 25-year-old, who joined the Toffees from Wigan Athletic in 2013, was left out of Ronald Koeman's squad against Stoke City on Saturday and is expected to leave the club this summer.

It is understood that Palace midfielder James McArthur, who played alongside the Republic of Ireland international at both Hamilton Academical and Wigan, could play a key role in the prospective deal.

Eagles boss Alan Pardew sees McCarthy as an apt replacement for Australian midfielder Mile Jedinak who was sold to Aston Villa recently.