Everton are leading the race to sign James Rodriguez from Real Madrid in January, according to Spanish publication El Desmarque.

Carlo Ancelotti will be handed money to spend next month after being given assurances on transfers before agreeing to become the club's new manager.

And the Italian has set his sights on a move for Rodriguez, who he tried to sign for Napoli during the summer window.

Everton are reportedly leading the race to sign James Rodriguez from Real Madrid

Rodriguez, who is rated at £43m, has only made nine appearances for Real Madrid this season

El Desmarque claim that the Colombian, who will cost around £43million, is also wanted by Arsenal, Inter Milan, Roma and Marseille.

Ancelotti's former club, Napoli, also retain an interest in Rodriguez, who has made just nine appearances in all competitions for Real Madrid this season.

The same report suggests that Zinedine Zidane is keen to cash-in on the former Monaco man when the window opens, although AS say that Real want to keep Rodriguez until at least next summer.

Carlo Ancelotti is keen to be reunited with Rodriguez after working with him at Real and Bayern

Ancelotti celebrates with his Everton players after earning a second straight win at Newcastle

The 28-year-old spent the last two seasons on loan at Bayern Munich, but failed to do enough to earn a permanent move to the Bundesliga giants.

Ancelotti has signed Rodriguez twice previously - at Real and Bayern - and is said to be eager to link up with him for a third time.

The Italian has confirmed that Everton will not be targeting a new striker next month, but he has now ruled out strengthening his squad in other areas.