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Sky Sports News report that the deal is worth an initial £3.5 million, and will rise to £5 million dependent on the player's appearances and performance.
The 20-year-old has been a breath of fresh air in the full-back positions throughout last season, and booted Sun Jihai out of his right-back berth. A number of Premier League clubs including Arsenal and Manchester United were supposedly interested in the England U21 international.
If Kyle does join the Toffees, he will meet up with former United defender Phil Jagielka who has recently made appearances in the senior England side, and was voted Everton's player of the season for 2008/2009.