The 26-year-old will link up with David Moyes' squad and undergo a medical in the next 24 hours.

His signing by the Toffees is also subject to a work permit application which has been lodged with the Home Office.

Castillo has 33 caps for the South American country and played for them in the 2006 World Cup, appearing in their narrow second-round defeat at the hands of England.

The defensive midfielder joined Red Star from Ecuadorian club El Nacional in 2006 after starting his career with El Deportivo ESPOLI.

He previously had a trial with Blackburn but Rovers could not agree a deal with the Serbian club.

:: Hamburg are set to sign Germany full-back Marcell Jansen on a five-year deal from Bayern Munich.

:: Lyon are closing in on the signing of AC Milan full-back Massimo Oddo, according to reports in France.

:: SOUTHAMPTON have boosted their attacking ranks with the signing of rookie Czech striker Tomas Pekhart on loan from Tottenham.

:: Hamburg's signing of defender Alex Silva from Sao Paulo has been delayed despite the player passing a medical.

:: SWINDON boss Maurice Malpas has confirmed he may pull the plug on BOURNEMOUTH's proposed loan-move for Barry Corr.

:: PETERBOROUGH have beaten off competition from three other clubs to sign DAGENHAM winger Dominic Green for an undisclosed fee.