• Dutchman will be joined by two members of coaching staff • Farhad Moshiri promises biggest transfer budget in club’s history

Ronald Koeman is expected to be appointed Everton’s new manager within 48 hours after Southampton accepted a compensation package worth around £5m for the Dutch coach and members of his backroom staff.

Farhad Moshiri, Everton’s major shareholder, identified Koeman as his leading candidate to succeed Roberto Martínez after deciding to end the Catalan’s three-year tenure before the end of last season. The determination to prise Koeman from St Mary’s has led to the British-Iranian billionaire meeting Southampton’s demands after several days of negotiations.

Moshiri has also agreed to pay the former Ajax, Valencia and Benfica coach around £6m a year at Goodison Park and tempted him north with the promise of the biggest transfer budget in Everton’s history. Koeman, 53, will receive substantial funds in addition to the proceeds of Romelu Lukaku’s anticipated sale and possibly that of John Stones. Manchester City and Manchester United are both keen on the England defender.

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Everton are likely to confirm their managerial search is over on Wednesday or Thursday, once the fine details of Koeman’s contract have been ratified. The man who guided Southampton to sixth and seventh in the Premier League during his two seasons at St Mary’s is on holiday but negotiations have proceeded with his agent, Rob Jansen.

Koeman will be joined on Merseyside by his brother Erwin and compatriot Jan Kluitenberg, Southampton’s assistant manager and first-team coach respectively. Other members of the back-room team, the former Liverpool player and coach Sammy Lee and the goalkeeping coach Dave Watson are not part of the compensation package agreed with Everton and to remain with Saints.

Southampton finished five places and 16 points above Everton last season, whose second consecutive 11th-place finish coupled with the lowest points total at home since the introduction of three points for a win in 1981 accounted for Martínez. Officials at St Mary’s had been confident Koeman would extend a contract that had only 12 months remaining, and were given some encouragement by their manager in that respect, but Moshiri’s resources and ambition convinced the Dutchman otherwise.

Everton also considered Frank de Boer, Manuel Pellegrini and Unai Emery but Koeman was always the favoured candidate, with Moshiri aiming to revive fortunes and relocate to a new stadium.

De Boer, who stepped down as Ajax’s head coach at the end of last season, may replace Koeman at St Mary’s, although Eddie Howe has admirers at St Mary’s after an impressive first season in the Premier League with Bournemouth.