The Scotland international is available as a free agent and has been without a club since being released by Birmingham at the end of last season.
He has spent much of his time since leaving the Blues working on his fitness, with a serious knee injury having kept him sidelined for over a year.
Numerous clubs have expressed an interest in his services and he recently took in a spell training with Wolves.
SPL giants Celtic then admitted to being keen on the 28-year-old forward, with Neil Lennon willing to offer McFadden a return to Scottish football.
Everton have, however, leapt to the front of the queue, according to skysports.com.
David Moyes knows all about McFadden and what he is capable of, having snapped him up from Motherwell in 2003.
He spent five productive years with the Toffees before leaving for Birmingham in 2008.
It appears that he is now poised to complete a return to Merseyside, with Everton prepared to hand him a deal should he agree terms and pass all the relevant medical tests.
Source: Team Talk
Source: Team Talk