Everton during the January transfer window.
According to reports from French newspaper Sud Ouest, the 24-year-old Capoue will undertake a medical at Goodison Park in the next couple of days.
It is understood that the Toffees have agreed a transfer fee of between 10 and 12 million euros with Toulouse for the French international.
News of Capoue’s expected arrival will cast yet more doubt over star midfielder Marouane Fellaini’s future on Merseyside.
The Belgian international has been heavily linked with a move away from Goodison this January, with Chelsea reportedly his biggest suitors.
Capoue is rated in France as one of Toulouse’s most talented players in recent history and his physical attributes will have made him an attractive transfer target for David Moyes, especially in the event of Fellaini’s departure.
It is believed that Everton will face stiff competition for Capoue’s signature, as Arsenal look to reignite their interest in the player.
The Gunners were connected with a swoop for his services last summer, but a move to the Emirates may finally materialise this month.
Capoue has played 18 times for Toulouse this season, scoring three goals.
Having joined the French club’s youth team in 2005, and graduated to the senior setup two years later, he has gone from strength to strength.
A versatile player, who can also be deployed in defence, he finally earned international recognition in August last year, when he made the first of four appearances to-date for Les Bleus.