Dyche previously managed Burnley.
Sean Dyche is set to be announced as Everton's new manager, replacing Frank Lampard who was sacked earlier this week. At the time of writing, the Toffees had yet to make an official announcement, but reports suggest that the appointment is imminent.
Everton are expected to announce the appointment of the former Burnley boss on Friday after the two parties held positive talks on Thursday.
The Merseyside club, who are in 19th place with 15 points from 20 games, also spoke with Marcelo Bielsa about the vacant position.
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The former Leeds United manager was said to be the club's number-one choice, but they couldn't agree on terms. Bielsa reportedly sought a big financial package to cover his entire coaching team. Sky Sports report the deal would have cost Everton almost £1m a month.
Bielsa also reportedly felt he needed a pre-season campaign to familiarise the Toffees' squad with his playing style. According to
The Times, the Argentinian coach made an unorthodox request during negotiations.
Bielsa is said to have wanted to bring eight backroom staff members with him to the club, and work with Everton's Under-21s and academy teams until the end of the season. At that point, he would step up and become the first-team manager.
Everton, who are deep in a relegation battle, rejected this plan and the two parties walked away from the negotiations, leaving Dyche in the prime position to succeed Lampard.
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Dyche has been out of football management since being sacked by Burnley last April. The 51-year-old, however, achieved great success with the Clarets in a nine-year stint at the club.
Under Dyche, Burnley were promoted to the Premier League twice, winning the EFL Championship on both occasions.
He also helped the club finish seventh in the top flight and qualify for the Europa League.
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