Ancelotti could take over as manager at Goodison Park by the end of this week

Duncan Ferguson’s stint as Everton caretaker manager is set to extend to the Premier League game against Arsenal on Saturday as negotiations to make Carlo Ancelotti the club’s new permanent appointment continue.

Ancelotti has returned to Italy where discussions are taking place with former club Napoli over the severance package on a contract which was scheduled to run until 2021 before his sacking last week.

The 60-year-old is keen to succeed Marco Silva at Goodison Park, having held lengthy talks with the owner Farhad Moshiri, the chairman Bill Kenwright and director of football, Marcel Brands, and will become the highest-paid manager in Everton’s history if there are no late hitches.

An incentivised contract worth around £9 million-a-year has been discussed, according to sources in Italy.