Everton manager Walter Smith plans urgent talks following his return from holiday on Tuesday to decide the future of unsettled England midfielder Nick Barmby.

The outcome is certain to be the sale of the 26-year-old, who remains the club's most expensive signing almost four years after arriving on Merseyside from Middlesbrough for £5.75million.

As Soccernet reported last week, Chelsea are favourites to sign him by swiftly completing a £7.5mdeal and Smith is now virtually resigned to the departure of Barmby, who revived his career so impressively that he forced his way into Kevin Keegan's Euro 2000 squad.

A parting of the ways became inevitable when he rejected a new four-year contract at £27,000 a week.

As in the case of former skipper Don Hutchison, who was offered less than half that - £12,000 a week - Barmby will be told again that the limit has been reached. Smith wants the matter resolved quickly so that he can continue his plans for the new season.

Smith has agreed to pay Newcastle £3m for left back Alessandro Pistone and is confident of signing the 24-year-old Italian. That is likely to lead to more talks with England Under-21 defender Michael Ball about his future. Hutchison remains at the club four months after being stripped of the captaincy and transfer-listed.

The only firm offer Everton have had for the Scotland man was a derisory £1m bid from Sunderland shortly before the March transfer deadline.

Goodison Park goalkeeper Thomas Myhre has attracted Benfica and clubs in Italy and Spain following impressive performances for Norway in Euro 2000.