The Merseyside giants are the only Premier League club not to make a signing in the January transfer window and they are deep in relegation trouble.
They are looking into all avenues to make signings and approached Championship side Watford about Sarr.
Everton offered to pay a loan fee of £2m to sign the winger until the end of the season, with an obligation to buy kicking in if they survive.
Sarr would then cost Everton a further £30m.
It is also claimed there was an appearance bonus worth £4m included in the offer.
Watford though were unwilling to part with Sarr so late in the transfer window and rejected Everton’s offer.
They consider Sarr to be a key man as they battle to try to return to the Premier League and Everton have been left disappointed.
