Luke Garbutt is to sign a new five-year contract at Everton and then move to Bournemouth on a season-long loan.

The England Under-21 left-back, who left Leeds United for Goodison Park in 2009, had appeared likely to depart after negotiations stalled. However, with the 22-year-old’s contract due to expire next week, he has agreed terms through to 2020. He will return to Everton to challenge Leighton Baines for the left-back spot in 2016-17.

Garbutt has played in both of England Under-21s’ group games at the European Championship but his involvement at Everton has been limited to five Premier League appearances and a handful of Europa League games. There have also been loan spells at Cheltenham and Colchester, though he will challenge Charlie Daniels for a starting place in Bournemouth’s first top-flight campaign.

Both Bournemouth and Swansea City had expressed an interest in securing Garbutt on a permanent deal, their hopes having briefly risen when the player was omitted from Roberto Martínez’s match-day squad for the final two games of the domestic season despite injuries to Baines and Bryan Oviedo.