By Will Butcher

Celtic are looking to bolster their midfield with the loan signing of Everton midfielder James McCarthy after securing a Champions League windfall, according to a report.

ITV News claim the Hoops are set to pocket around £30million though qualifying, ticket sales and television rights from the competition, and are expected to use some of that money to strengthen their squad.

The Daily Mail claim that manager Brendan Rodgers has initiated moves to bring McCarthy to Parkhead and see off interest in the player from Sunderland, Watford, Crystal Palace, Bournemouth and Championship big hitters Newcastle.

The 25-year-old midfielder has fallen down the pecking order at Goodison Park with the arrival of Aston Villa’s Idrissa Gueye, and was even played out of position at right-back in the Toffees’ first two league games.

Ronald Koeman has an array of midfielders available to him, with Gueye, Darren Gibson, Tom Cleverley, Muhamed Besic, Gareth Barry, and even playmaker Ross Barkley all recognised as possible options.

McCarthy has been a mainstay in the Everton side following his £13million move from Wigan three years ago, and has four years remaining on his Goodison Park deal.

In the last three seasons, the former Hamilton star has made 113 league and cup encounters for the Toffees and has since become popular among the Merseyside club’s fanbase.

Everton’s number 16 is renowned for his impressive array of passing, as well as his ability to break up opposition play.

A move to Celtic would see McCarthy partner captain Scott Brown, with Nir Bitton making way. The former Hamilton midfielder would become the Hoops’ sixth signing, with Rodgers bringing in the likes of Moussa Dembele, Scott Sinclair and Kolo Toure.

In other Celtic transfer news, this reported Hoops target has given an update on his transfer situation.