Valencia have reached a deal to sign Everton transfer target Manuel Fernandes.

Everton believed they were close to landing the 21-year-old midfielder, who was impressive during a loan spell at Goodison Park last season.

But now Fernandes, a product of Benfica's youth academy, is set to sign a six-year deal at the Mestalla.

A statement on Valencia's official website read: "Valencia have reached an agreement during this morning, pending medical tests, for the signing of Portuguese midfielder Manuel Henrique Tavares Fernandes for six years with a buy-out clause of €60 million.

"The 21-year-old midfielder, a product of the Benfica youth academy, will be presented in the next few days by the Mestalla club."

The fee for Fernandes is somewhere around €15million, according to reports in the Spanish media.

Fernandes watched from the stands as Everton drew 1-1 with Blackburn on Saturday.

He had already successfully completed a medical at Goodison Park, and the contracts - which included issues of third-party ownership - were being studied by Premier League officials.

And as late as Friday the club were expecting clearance for Fernandes to be in their squad for the Blackburn game.

But the whole deal has been turned on its head, even though Everton had actually agreed to meet the asking price for 100 per cent of the player.

Previously it was believed that they had agreed to pay Benfica £6million for their half of Fernandes, with the third-party owners holding the other 50 per cent.

That initially caused problems for the Premier League, who are clamping down on all third-party transfers in the wake of the Carlos Tevez affair, and Everton then moved to buy out the other half from the owners.