The Toffees have made Luis Diaz a top priority to reinforce their attack.
The report also adds that James Rodriguez could be used as a makeweight in the deal as the Colombian is keen on leaving Goodison Park after just one season.
James moved to the Premier League last summer after the then-manager Carlo Ancelotti persuaded him to join the Toffees.
The former Real Madrid star endured a fluctuating season, but his hopes of continuity in the English top-flight have withered after Ancelotti left the Goodison Park to join Los Blancos.
Furthermore, the 30-year-old appears to be not in the plans of the new boss Rafa Benitez, who had earlier stated that the playmaker’s fitness could be a concern in the long run.
Now, the Toffees have jumped ahead of Leicester City and Tottenham Hotspur in the race for Porto starlet Diaz.
While he is valued at 30m pounds, the Toffees are looking to offer James to the Portuguese club on a season-long to the Portuguese outfit to reduce the fee.
Diaz enjoyed a brilliant Copa America campaign with the Colombian national team, racking up four goals in the tournament. He is already off to a flyer in the Portuguese top-flight this season, scoring 2 goals in 3 games.
Everton are looking for one or two signings before the transfer window closes as their forwards Richarlison and Moise Kean are linked with an exit.
Richarlison is being lined up as a replacement for PSG ace Kylian Mbappe but Benitez has shrugged off the Brazilian’s exit links. Meanwhile, Serie A giants Juventus are interested in re-signing Kean.