By Alex Stevens

Everton have appointed Ronald Koeman as their new manager, the club confirmed on Tuesday morning.

The Merseysiders announced that the Dutchman is the club’s new manager after signing a three-year contract.

Koeman, who had one year left on his contract at Southampton, replaces Roberto Martinez, who was sacked last month.

Sky Sports have claimed that Everton have paid the Saints around £5million in compensation for the services of the former Holland defender.

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

Sky Sports also report that 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.

This means that the total cost of the deal to take Koeman, his brother and assistant manager Erwin plus fitness coach Jan Kluitenberg to Goodison Park will amount to a staggering £23million over the three years of the contract.

The 53-year-old was pursued to succeed Martinez after guiding the Saints to back-to-back record breaking points totals in the Premier League and this season secured Europa League football.

Everton chairman Bill Kenwright told the club’s official website: “We are really pleased to have secured the man who was our No 1 target from the moment we set out to appoint a new manager.

“Ronald has such a strong track record in the game, instantly commanding respect for what he achieved as a player and for his qualities and accomplishments as a manager.

“The hopes and aspirations that we all have as Evertonians are with him, as is our total support at Board, shareholder and fan level.”

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