By Alex Stevens

Everton have finalised a £5million deal to make Ronald Koeman their new manager, according to the BBC.

The Merseysiders have been locked in talks with Southampton in recent days as they try and thrash out a compensation package for Koeman.

It was reported by the BBC Sport website on Tuesday afternoon that the negotiations between the two clubs are now over and Koeman is free to be appointed Everton’s new manager.

BBC Radio Solent’s sports editor Adam Blackmore claimed on his  personal Twitter account that Everton are not expected to officially announce the Dutchman as their new boss until at least Wednesday.

Koeman leaves despite having one year remaining on his contract with the south coast club, and it was claimed last week that the compensation figure is the equivalent of a year’s salary, which is £3million.

However, the BBC reported that the sum Everton have agreed to pay the Saints will be considerably higher, at £5million.

This is effectively a transfer fee to sign Koeman, who is in demand following an impressive two-year spell at Southampton.

The Dutchman has guided the Saints to back-to-back record breaking points totals in the Premier League and this season secured Europa League football.

The former defender is set to earn £6million-a-year at Goodison and will be handed a club record transfer kitty, which is set to exceed £100million.

Bookmaker Sky Bet uspended its next Everton manager market on Sunday following a wave of large bets on Koeman.

The 53-year-old has been pursued to succeed Roberto Martinez, who was sacked by Everton at the end of the Premier League season.

In other Everton news, Koeman has already shortlisted a Premier League defender to be his first signing at the club.