Everton are reportedly close to hiring Carlo Ancelotti but caretaker Duncan Ferguson remains in charge as he is expected to guide the team in the upcoming clash against Arsenal on Saturday.
According to BBC Sports, Everton is yet to sign the former Napoli boss on a long term contract despite the fact that he has officially cut ties with his former club.
The 60-year-old is one of the most successful managers in modern football game having won Champions League three times with AC Milan and Real Madrid and led Napoli to the last 16 before being sacked.
He was reportedly shortlisted alongside side former Everton coach, David Moyes and Vitor Pereira who preferred to remain with his current club in Shanghai.
Ancelotti held talks with Everton owner Farhad Moshir in London this week but the Toffees are not ready to make any announcements yet until all arrangements have been completed.
In the meantime, Ferguson remains in charge and will lead the team to a match against Arsenal who will announce their new manager, Mikel Arteta, on Friday.
Under Ferguson, Everton have won 3-1 at home against Chelsea, 1-1 against Manchester United and 2-2 draw against Leicester but the Foxes won 4-2 on penalties to kick them out of Carabao Cup on Wednesday.