Southampton, Everton 'close to agreeing £5m compensation for Ronald Koeman'

Southampton and Everton are reportedly edging closer to agreeing a £5m compensation deal for Ronald Koeman.

The Dutchman is believed to have agreed a three-year contract to become Everton's new manager following the sacking of Roberto Martinez.

Southampton finished five places above the Merseyside outfit in the Premier League table, but the promise of a hefty transfer kitty is believed to have persuaded Koeman to make the move.

Before the appointment can be official, Everton and Southampton need to come to an agreement regarding compensation, and according to Sky Sports News, both parties are close to sealing a £5m deal.

Meanwhile, Southampton are believed to be keen on replacing Koeman with Bournemouth boss Eddie Howe, but the 38-year-old reportedly has no intention of leaving the Cherries.