Everton splashed the cash last summer.
Carlo Ancelotti spent over £67m in the summer, with Ben Godfrey, Allan, Abdoulaye Doucouré and James Rodriguez all joining the club.
They hit the ground running this season, taking an early lead in the Premier League after winning each of their opening four games.
However, they've lost their last three games and have slipped to seventh.
It's become obvious that Everton don't have the squad needed to push for a Champions League berth.
And Ancelotti is looking to bolster his squad further in the January transfer market.
Football Insider reports that the the Italian is eyeing a move for Manchester United winger, Daniel James.
The Toffees tried to sign James last year but it was United who eventually signed him from Swansea City.
But he has failed to establish himself as a first team regular at Old Trafford. He's failed to feature in United's last four games and could be available on a temporary basis in January.
GIVEEMESPORT'S JAMES STROUD SAYS:
James guarantees one thing - pace.
In fact, per the Metro, Ryan Giggs once described him as 'the quickest player he's ever seen'.
And that's exactly what Everton could do with at the moment.
After getting rid of Theo Walcott, Everton currently don't have an out-and-winger with electric pace.
James will help fill that void. He probably won't start each and every game but he would be a great option to introduce off the bench.
His speed makes him a massive threat and he could thrive running on to balls produced by Rodriguez.
Given he would just be a loan signing, he would also not be much of a risk at all.
And, if he does well, they may even be able to persuade United to let him go on a permanent basis next summer.News Now - Sport News