Former Napoli coach Carlo Ancelotti has agreed terms with Everton, it has been revealed.

The Sun says Ancelotti has agreed a £14million to deal to take charge of Everton after being axed by Napoli.

The 60-year-old will receive a £2.5million bonus for keeping the club in the Premier League this season.

The Toffees are hovering above the relegation zone after winning just five times in 17 attempts.

It is understood that Ancelotti will be officially unveiled on Thursday this week.

He is set to take charge of Everton for the first time when they face Arsenal on Saturday at Goodison Park.

Ancelotti reached an agreement with the Toffees on Monday night after the club confirmed they had held meetings with a number of candidates.

He will pocket a basic salary £11.5million-per-year in Merseyside, with a bonus of £2.5m if he keeps the Toffees in the Premier League.