Toffees chief Roberto Martinez is keen to snap up more fresh faces after sealing a deal for Lacina Traore as he plots to keep his side in the battle for a top four finish.
Canales has emerged as a target, with the promising playmaker having dropped down the pecking order at the Mestalla.
New Valencia boss Juan Antonio Pizzi is believed to be in favour of letting the 22-year-old leave if the club’s proposed new owners give him significant funds for major arrivals.
Canales has long been thought of as one of Spanish football’s finest young players after bursting onto the scene with Racing Santander.
His impressive displays led to a big move to Real Madrid, but a series of injuries have seen his career stagnate.
Martinez is hopeful that he can help his compatriot to recapture his form at Goodison Park, with his technically adept playing style suited to the ex-Wigan man’s approach.
A loan offer with a view to a £4m buy in the summer is being mooted, which could appeal to the player and both teams.