Benitez has been unemployed since leaving Dalian Yifang’s Chinese team in January.
Sky Sports News learned that the Spaniard was the No.1 choice in Everton’s hierarchy last night and has now been offered the job.
The former Liverpool and Chelsea manager is set to return to the Premier League two years after leaving Newcastle United.
Everton were also in talks with former Wolves boss Nuno Espirito Santo to become Carlo Ancelotti’s successor, while David Moyes was also seen as a favorite before signing a new contract with West Ham.
Ancelotti stepped down as manager to return to Real Madrid earlier this month after 18 months at Goodison Park. He has guided the Toffees to a 10th place in the Premier League this season.
Benitez managed rival Everton from 2004 to 2010 and won the Champions League, FA Cup and UEFA Super Cup while at Anfield.
He joined interim Chelsea in 2012 and won the Europa League and guided the Blues to a third place in the Premier League that season.
After stints at Real Madrid and Napoli, Bentiez moved to Newcastle in 2016 and oversaw their relegation from the top flight. He then led Newcastle to a return to the Premier League in 2016/17 as they were promoted to league champions.
Over the next two seasons, the club finished 10th and 13th in the top flight under Benitez before leaving St James’ Park in 2019.