The 61-year-old tactician could be announced in the next coming weeks as he's expected to sign his new deal.
Benitez, a replacement for departed Carlo Ancelotti will become the Toffees' fifth permanent manager after the latter re-united with his former side Real Madrid earlier this month.
Since vacating his post at Chinese Super League club, Dalian Pro, Benitez is yet to return to the dugout.
After an interesting shortlists of Roberto Martinez, Christophe Galtier of Lille and Eddie Howe, Benitez has emerged as the perfect option for the job.
The Spaniard's arrival will come 11 years after he left Anfield, a venue he spent six years as Liverpool manager, winning the Champions League and FA Cup.
Benitez has also managed Liverpool, Inter Milan, Napoli and Real Madrid.
