The 28-year-old Walcott is now close to agreeing a switch to Goodison once he has passed his medical and agreed personal terms at the training complex at Finch Farm.
The report claims that both parties are aiming to thrash out the final details of the deal in time for Walcott to have the relevant medical checks.
Premier League rivals, Southampton, were also thought to be in pursuit of the speed-merchant but it is believed that the financial backing of the board and the opportunity to work under Allardyce were the factors which swayed the winger's decision.
Walcott's 12-year stay at the Gunners appears to be at an end, while Everton look to have beaten off competition from the 28-year-old's former club Southampton for his signature.
Everton are interested in Arsenal forward Theo Walcott and in his recent attempt to convince the England worldwide to join the Toffees, manager Sam Allardyce has offered the player the position of his choice. Likely played last #AFC game (397 apps, 108 goals).
Arsenal's longest-serving player Walcott has scored 108 goals for the club but has found game time hard to come by this season in a year when he is desperate to be included in Gareth Southgate's England squad for the World Cup in Russian Federation.
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Should, as expected, Walcott complete his move to Everton, then it is a deal that should suit all parties involved.
Walcott is keen to get first-team football to reinvigorate his worldwide career and finally appear for England at a World Cup finals.
The Toffees' boss Sam Allardyce is keen on strengthening his forward line that has been struggling to deliver goals this season, following the summer departure of Romelu Lukaku to Manchester United.
Having already parted with £27 million in order to bring Turkey worldwide Cenk Tosun to Goodison Park earlier this month, Toffees boss Sam Allardyce will be delighted to add the England global to his ranks after speaking of his desire to bolster his attacking options earlier this month.
Walcott may have failed to meet the huge expectations at the Emirates, but he has shown that he has plenty left to offer at this level.
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