The Arsenal winger is expected to bring his 12-year-long stay in north London to an end, having joined as a 16-year-old.
Sam Allardyce, the Everton manager, confirmed the Merseyside club’s interest last Friday and is now expected to beat Walcott’s former club Southampton to his signature.
Everton prioritised reinforcements up front at the start of the January transfer window after a poor season in front of goal so far.
Last week, Besiktas’ Cenk Tosun arrived for in a deal worth an initial £21m and Walcott, who has 18 months remaining on his current Arsenal contract, will add more attacking depth.
“Theo's not as risky [as Tosun] because he's proven,” Allardyce said on Friday. “He's scored 100 goals for Arsenal from wide positions as well as many assists.
“His pace is one of his key strengths which we lack in this squad. His assists are pretty good as well as his goals.
“We are short of goals so to add power in our goalscoring ability would be very important for me.”
Arsenal, meanwhile, are expected to use the funds from Walcott’s sale to pursue Borussia Dortmund striker Pierre-Emerick Aubameyang and Bordeaux’s Malcolm.
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