By North-west correspondent Alex Stevens

Everton have paid £2million in compensation to recruit Steve Walsh from Leicester, according to a report.

The Telegraph claim the Merseysiders have stumped up the multi-million pound sum to land Walsh, who was appointed as their new director of football on Thursday.

Walsh only signed a new contract at the King Power Stadium in May, that ran until 2018.

Everton unveiled Walsh on their club website as they continue their overhaul of the senior management team following the summer arrival of new manager Ronald Koeman.

The move will see Walsh, who doubled up as Claudio Ranieri’s assistant manager last season, take charge of player recruitment at Goodison Park.

The hot talent-spotter has been credited with finding the players who spearheaded Leicester’s against-the-odds title win, including Jamie Vardy, N’Golo Kante and Riyad Mahrez.

During his career, Walsh has also been credited with scouting and recommending the signings of such players as Gianfranco Zola, Didier Drogba and Michael Essien.

The Telegraph reported earlier this month that Everton had made an approach for Walsh and were offering him a position as their new director of football.

He will now work in close tandem with Koeman as the Merseysiders attempt to rejuvenate their squad and bring in some high-profile additions before the start of the Premier League 2016-17 campaign.

Koeman has only strengthened his goalkeeping department so far, with the experienced Maarten Stekelenburg and young prospect Chris Renshaw.

The club are also expected to let youngster John Stones leave in a £53million world record transfer, which would see Everton with a good transfer pot to delve in to.

In other Everton news, Toffee target Juan Mata has dismissed speculation surrounding his exit from Old Trafford after telling young fans not to listen to the media.