Everton were dealt with some devastating news on Tuesday afternoon.

Reports emerged on Tuesday morning that Real Madrid were targeting Carlo Ancelotti as their new manager.

The move looks like a done deal with Fabrizio Romano reporting that Real Madrid will announce the return of the Italian manager soon.

"Carlo Ancelotti to Real Madrid, here we go!" he wrote.

"The agreement on the termination of his contract with Everton is set to be completed, the two clubs are in direct contact then Carlo will re-join Real Madrid. Expected to be official soon."

Attention now turns to who Everton can replace the 61-year-old with.

According to the Athletic, they have a shock name in mind.

It has been reported that Everton have drawn up a shortlist of managers they could approach.

And on that six-man shortlist is none other than Liverpool legend, Steven Gerrard.

Gerrard has had incredible success since joining Rangers. He led the side to the Scottish Premiership this season, breaking Celtic's dominance in the process.

It's important to note that no contact has been made with any of the candidates as of yet.

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But, the fact they would even consider appointing Gerrard is surprising enough. Whether he would be open to joining remains to be seen.

Another manager with Liverpool ties on their shortlist is Rafa Benitez.

Others that they are considering include Paulo Fonseca, Erik ten Hag and Roberto Martinez.

Former boss David Moyes is also being considered, but the Scotsman is set to extend his contract at West Ham meaning it is unlikely he would join.