Beattie is due to undergo a medical with Everton today and the club hope to conclude the deal in the next few days.

The club’s official website, www.evertonfc.com, reported: “James Beattie is poised to become Everton’s record signing after agreeing personal terms.

“The 26-year-old has decided that his future lies on Merseyside and he looks set to put pen to paper within the next couple of days.”

Beattie joined Saints from Blackburn in 1998, scoring 76 goals in 233 appearances and earning four England caps.

He was one of the club’s prized assets but new Southampton boss Harry Redknapp has decided to sell to provide funds for a January recruitment drive.

Everton and Villa, both keen to strengthen small squads during the transfer window, were alerted by the player’s potential availability.

His decision to join Everton represents a coup for manager David Moyes and illustrates the club’s growing attractiveness.

The Toffees, currently fourth in the Barclays Premiership, have shed their image as relegation strugglers this season and got their financial house in order.

He will join a club not short on strikers with Marcus Bent, James McFadden, Kevin Campbell and Duncan Ferguson all vying for places.

Former Everton stalwart Graeme Sharp believes the move for Beattie could now signal the end at the club for Campbell and Ferguson.

Sharp told Sky Sports News: “We have been crying out for a decent forward but a player of the class of James Beattie, you have got to be interested.

“What you are getting is a proven goalscorer in the Premier League. I think James Beattie will be a good signing for Everton.”

He added: “I think their (Campbell’s and Ferguson’s) contracts are up at the end of the year and David (Moyes) has got big decisions to make.”