Carlo Ancelotti will appoint his son Davide and Duncan Ferguson as his assistants when he takes over at Everton .
Ancelotti met Everton’s majority shareholder Farhad Moshiri in London on Tuesday for his first face-to-face talks with the Blues about becoming manager.
Although the discussions were positive, there is understood to be some work still to do before Everton can confirm the three-time Champions League winning coach as Marco Silva’s successor.
Ancelotti and Everton have settled on his principal backroom staff and the Italian has agreed to give Ferguson a prominent role.
The Blues hierarchy have been hugely impressed by the way Ferguson has galvanised the team in his two games in caretaker charge.
Ferguson has re-connected the team with the fans and the Blues want to preserve this important link under Ancelotti.
Ancelotti, 60, will bring in his son Davide, who has worked with the legendary Italian boss since being appointed as Paris Saint-Germain’s fitness coach in 2012.
Davide, 30, who has gained his UEFA A coaching licence, held the same position at Real Madrid before becoming Ancelotti’s assistant at his last two clubs, Bayern Munich and Napoli.
Ancelotti is not expected to take charge for the first time until Everton’s Boxing Day clash with Burnley at Goodison Park because he has yet to agree his severance package with Napoli.
Talks with Napoli president Aurelio de Laurentiis could take a couple of days and Everton will leave Ferguson in caretaker charge for Saturday’s home clash with Arsenal .
Moshiri has impressed Ancelotti with his ambitions for Everton and he is willing to make him one of the highest-paid coaches in Europe.
Everton are prepared to give Ancelotti a three-and-a-half year contact until June 2023, which could be worth a reported £11.5million-a-year.
Moshiri has also promised Ancelotti substantial funds to assemble a squad capable of challenging for honours and European football.
Ancelotti was prepared to wait until the summer for his next job after being sacked by Napoli last week, just hours after guiding them into the last 16 of the Champions League.
But Everton’s strong push for him is persuading him to return to management straight away.
