1108 GMT November 28, 2020
Ancelotti was sacked by Napoli last week but remains under contract until June 2021, the Guardian reported.
He will hold talks with the Serie A club and decide the best course of action to sever his ties and succeed Marco Silva at Everton.
The 60-year-old, who was in London on Tuesday morning, has made it clear that he is only interested in a long-term deal with the club and has sought reassurances that there will be money to spend in the summer.
The Italian has spent most of his career coaching teams in the Champions League but is attracted to the challenge of revitalizing Everton, which is in a relegation battle but has beaten Chelsea and drawn with Manchester United in its past two matches under the caretaker Duncan Ferguson.
Ancelotti has been keen to return to the Premier League, having managed Chelsea and won the Double with the Blues in 2010.