Everton agree three-year deal with James Rodriguez

James Rodriguez has reportedly agreed a three-year deal with Everton.

The Colombian international will be reunited with Carlo Ancelotti, having previously worked under the Italian at Real Madrid and Bayern Munich.

Rodriguez will undergo his medical on Wednesday, and is understood to have taken a significant pay cut to join the Toffees, according to The Telegraph.

It is unclear exactly how much Everton have forked out for the former World Cup Golden Boot winner, but Real Madrid were believed to be demanding a fee in excess of £20million, despite him only having 10 months remaining on his contract at the Bernabeu.

Everton are also reportedly on the verge of finalising a deal for midfielder Allan.

The 29-year-old is set to arrive from Napoli after the Italian club accepted a £24million offer.

Allan also worked alongside Ancelotti when he was in charge of the Serie A side.