The 32-year-old has been has been at Goodison Park since 2004, but will move to the Major League Soccer club after agreeing personal terms and passing a medical.
Everton posted a statement on their official website on Tuesday, paving the way for the Australian's departure if he can agree personal terms and pass a medical.
"Everton have agreed with Major League Soccer [MLS] that Tim Cahill can be transferred to the New York Red Bulls," the statement read.
"Tim, 32, will move to the Red Bulls for a nominal fee, subject to agreeing personal terms and passing a medical. He will travel to the US in the next few days."The transfer fee is yet to be disclosed, but is reported to be worth £1 million, and with the player having been linked with a move away from the club, the Red Bulls have fought off competition from the Middle East and China for the his signiture.
Cahill had played 278 times for the Toffees since his move from Millwall in 2004, scoring 68 goals. The Australia international has also earned 55 caps, scoring 24 times for his country.