The Merseyside club have been forced into looking for a new manager after it emerged Ancelotti is set to leave Goodison Park for Real Madrid.


The Italian has agreed to the move to the Spanish capital and his agents are negotiating the termination of his contract with Everton.



Everton are resigned to losing Ancelotti and they have now started their work towards seeking a replacement for the Italian.


And it has been claimed that Wolves manager Nuno has emerged as the key contender to become the next Everton boss.



The Toffees are set to try and convince the Portuguese to move to Merseyside this summer.


Nuno left Wolves at the end of the season and it is unclear whether he is prepared to return to football so early.



Everton will make an approach for Nuno soon and look to entice him with a project at Goodison Park.


The club were not anticipating losing Ancelotti but are prepared to react quickly to the developing situation.