Everton want to sign Ainsley Maitland-Niles on loan from Arsenal.
The Toffees need a right-back and the Gunners are open to letting Maitland-Niles leave in this window.
Relations are good between the clubs following a number of deals between them in recent years, including Alex Iwobi and Theo Walcott.
Arsenal boss Mikel Arteta also remains highly regarded by the board at Goodison Park.
England international Maitland-Niles, who can also play in midfield, spent the back end of last season on loan at West Brom.
The 23-year-old also has interest from other clubs but Everton’s is said to be the strongest with little over four days of the window remaining.
Maitland-Niles, who is contracted to the Gunners until 2023, made his debut for Arsenal in 2014 and has made 122 appearances for his boyhood club, but has seen his gametime restricted in recent seasons.
Meanwhile, Everton are in talks to sign Porto winger Luis Diaz with James Rodriguez potentially part of a deal to move to Portugal on loan.
So far during the transfer window, Demarai Gray, Asmir Begovic, Andros Townsend and Andy Lonergan have joined the club.
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