Carlo Ancelotti has reached an agreement over the termination of his contract at former club Napoli, clearing the way for him to become Everton manager.

Sky Sports News, via their Italian counterpart, is reporting that Ancelotti’s legal team have been negotiating with the Serie A club, who sacked the 60-year-old two weeks ago.

With an agreement now reached, Ancelotti is now back in Italy where he is expected to meet Napoli representatives in order to sign documents in relation to his dismissal in person.

His deal with Everton is already agreed, but an announcement is not now expected until before the Toffees’ game against Arsenal at Goodison Park on Saturday.

Corriere Dello Sport reported earlier this week that Ancelotti is signing a four-and-a-half year deal until 2024 worth €6m (£5.1m) per year, though that figure includes his staff’s wages, with the entirety of the contract worth €27m (£23m).

Duncan Ferguson is expected to remain in caretaker charge of that game, with Ancelotti taking the reigns ahead of Boxing Day’s clash against Burnley.

Ferguson is also expected to remain part of the club’s coaching staff following Ancelotti’s arrival, though the Italian will bring much of his staff from Napoli including his son Davide, Francesco Mauri and Manuel Morabito (athletic trainers), Simone Montanaro (match analyst), Luca Guerra (goalkeeping coach) and Beniamino Fulco (supervisor).