Donovan, a Los Angeles Galaxy club-mate of David Beckham, needs to play competitive football at the end of the Major League Soccer to maintain his fitness for the World Cup finals in South Africa in June.

His move is similar to the one that Beckham has agreed with AC Milan.

Sources at Everton have confirmed that negotiations are at an advanced stage with the 27-year-old, who is the USA's all-time leading scorer.

If fit he is virtually certain of facing England in the group stages in South Africa.

His move to Merseyside would help boost Everton's injury-ravanged squad, and he will be able to play in the next stage of the Europa League.

Donovan has previously had spells with Bayer Leverkusen and Bayern Munich, but failed to find his best form in the German league.