Former England boss Sam Allardyce is being strongly linked with the vacancy and talks are said to be taking place between the club and his representatives.
The Dudley-born manager has also earned a reputation as a survival specialist, where he performed miracles at clubs like Crystal Palace and Sunderland as he helped ensure their Premier League status.
The Toffees announced that Allardyce will finalise terms at the club's USM Finch Farm training ground on Wednesday.
U23 boss David Unsworth was named caretaker on a short-term basis but the former Everton defender has struggled to improve results over the past month.
And Allardyce revealed that two major reasons convinced him to join the club: the first of which being the attraction of the club.
Talking about the managerial situation at the club, Unsworth said: "As we sit here right now, I believe the board are talking to a few people".
"It is a great club. Obviously, the club has gone through a hard spell and hopefully I can put that behind us as quickly as possible and start looking upwards again", Allardyce said in statement.
At the time, Everton were chucking increasingly silly amounts of money at Watford in the vain hope of luring Marco Silva to Merseyside, with Allardyce withdrawing his application after tiring of the dilly-dallying. "So I continue to do what I was asked to do five weeks ago". "It's what you need to have and hopefully we can deliver to the fans to get this club high up the league".
Everton now sit one place above the Premier League relegation zone after 13 games, having lost four of their last seven league games.
Wayne Rooney scored a hat-trick and Ashley Williams netted a great header, as Everton picked up a 4-0 victory over David Moyes' side.