Carlo Ancelotti is expected to sign a long-term deal to become Everton manager this week, according to reports.
The Toffees are on the lookout for a new permanent boss after the dismissal of Marco Silva earlier this month.
The Italian is set to sign a five-year deal contracting him to the Merseyside outfit until 2024.
Ancelotti is currently in London and has held talks with the Everton hierarchy following his sacking by Napoli last week.
The club issued a statement on Monday denying reports that they have offered the job to anyone.
But owner Farhad Moshiri, who has always been keen to install a big-name manager as Silva's successor, could tie up a deal in time for Ancelotti to take charge of this weekend's meeting with Arsenal.
Former Gunners boss Unai Emery reportedly rebuffed an approach from Everton as it came too soon after his own exit from the Emirates Stadium.
The Toffees have moved on quickly from that rejection, though, and are now on the verge of appointing one of the most high-profile names in the world of football.
That means Ferguson's future is uncertain, but the former Scotland international will be at the helm for Wednesday's League Cup quarter-final against Leicester.
Everton are currently 16th in the Premier League table, just a point above the bottom three.
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