Rafael Benitez is in prime position to be offered the Everton manager's job after a third round of talks with the club's hierarchy.
Nuno Espirito Santo, who left Wolves at the end of last season, has also been considered and remains a candidate.
Former Liverpool, Chelsea and Newcastle manager Benitez, however, is now firm favourite.
He could become the first man to manage both Merseyside clubs, having won the Champions League and the FA Cup during a six-year spell at Anfield.
Everton are determined to cast their net wide for a manager before making a final choice.