Everton have been looking for a new boss since Marco Silva lost his job earlier this month.
Duncan Ferguson has come in and performed admirably, winning against Chelsea in his first game in charge before holding Manchester United to a draw at Old Trafford.
But the Toffees wanted a more experienced manager to lead the team forward.
And it appears they've managed to get their man.
- Everton promised they'd look after Kean
- Kean looked knackered vs Man Utd
- 10 humiliating substitutions
They report that Ancelotti held positive talks with the club in Merseyside on Monday.
Everton now hope to make the announcement before their Carabao Cup tie against Leicester on Wednesday.
Wow. What a big appointment. That's sure to give everyone at Everton a lift.
But will Ancelotti be a success at Everton?
There's no doubting Ancelotti's pedigree as a manager. The Italian has had success nearly everywhere he's gone.
He managed one of Europe's best teams since the millennium started in the shape of AC Milan.
It was at the Milan club where he won one Serie A title and two Champions League's.
Ancelotti has since gone on to enjoy success at Paris Saint-Germain, Real Madrid and Bayern Munich.
He's also had experience in English football with Chelsea, which is a huge bonus.
He only lasted two seasons with the west London club, but he was able to win the treble in his first season in charge.
However, there will be some question marks.
Ancelotti is used to managing one of the best teams in the country and leading them to trophies.
That will not be the case with Everton. Instead of inheriting a squad and pointing them in the right direction, Ancelotti will have to build his own squad.
Whether he will be able to do that with Everton remains to be seen.
Ancelotti is also coming off the back of a very poor spell at Napoli, which ended in him being sacked just last week.
So there will be doubters. Only time will tell whether he will be able to transform Everton into a top four club in England.News Now - Sport News