Everton’s new director of football, Marcel Brands, has been involved in the decision to hire the 40-year-old, who was also the first choice of the owner Farhad Moshiri, and an announcement is set to be made in the next 48 hours.
Silva tried to leave Watford for Everton to replace Ronald Koeman last autumn, but the Hornets resisted their rival's offer of around £12 million ($16m/€13.7m).
Everton turned to Sam Allardyce instead as a rough start to the season saw them threatened with a relegation battle, but despite keeping his team in the Premier League, he left at the end of the campaign after proving unpopular with the fans.
Watford believed that Everton's approach unsettled Silva, who was subsequently sacked in January, but their complaints to the Premier League for the Merseyside club's "unwarranted approach" haven't proven to be an obstacle.
Silva had other offers but had always seen Everton as his first choice, having been keen to join them a few months ago. Brands begins work on Friday after joining from PSV and will work with Silva to overhaul the Everton squad following a disappointing season. He gave an insight into the strategy around the hiring of their new manager.
"I think it is important that he wants to work in the new philosophy, the new strategy of how we want to work with a director of football," Brands said. "I think it is important that he creates the environment for the long-term, and I think it is important that he is a modern coach. If you think about what Everton's plans are, I think a modern coach will fit into that profile."
Paulo Fonseca was also linked with the Everton job, but he agreed a new contract at Ukrainian side Shakhtar Donetsk. Bill Kenwright was thought to have preferred making an approach for Bournemouth boss Eddie Howe.