The Toffees will pay about £5m for the 53-year-old
Dutchman, who leaves Saints after two years in charge.
Everton have been without a manager since they sacked
Roberto Martinez just before the end of the 2015-16 season.
The Toffees finished 11th in his third year at the
club, with the Spaniard having promised Champions League qualification when
appointed.
Saints have finished seventh and sixth under Koeman.
Koeman, who is on holiday, will take brother Erwin and
fitness coach Jan Kluitenberg with him to Goodison Park
In April, Saints chairman Ralph Krueger said discussions with
Koeman over a new deal were progressing "in a very good direction",
but added the club was "not in any real hurry".
And last month the former Ajax, PSV Eindhoven and
Barcelona defender said he expected to stay with the Saints for the final year
of his contract.
Koeman enjoyed an impressive playing career, winning
the 1988 European Championship with the Netherlands.
He won the European Cup - now the Champions League -
with PSV Eindhoven in 1988 and Barcelona in 1992, scoring the winner for the
latter against Sampdoria at Wembley.
He also won four domestic league titles apiece in the
Netherlands and Spain and played 763 games for club and country, scoring 253
goals.
Koeman has managed Vitesse Arnhem, Ajax, Benfica, PSV,
Valencia, AZ Alkmaar, Feyenoord and Southampton.
He has won the Dutch league with both Ajax and PSV.
Koeman was only booked for this foul on David Platt
during a World Cup '94 qualifier - and scored the Netherlands' opening goal
soon after
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