Barkley turned down a big-money move to Chelsea at the last minute as he wanted to focus on his recovery.More news: Packers GM Ted Thompson not returning to team in same role
Barkley pulled out of a move in August after undergoing a medical, with a fee of £35m being agreed between the two clubs at the time, but the sum will now be considerably smaller as the Englishman has just five months to run on his existing deal.
As per reports, Barkley is only a medical away from joining the Premier League holders as Antonio Conte's is all in to cut a deal with Everton manager Sam Allardyce before the transfer window closes.
Barkley opted against leaving Everton while carrying a hamstring injury that has forced him to sit on the sidelines so far this season.More news: Did Wenger and Alexis get lucky with Man City injuries?
Tottenham have been monitoring Barkley's situation but Sky Sports suggest the North Londoners have made a decision to end their interest with Mauricio Pochettino now looking at alternative targets.
The 24-year-old England man rejected a new deal at Everton and is out of contract at the end of this season, opening the door to a cut-price move.
With Gylfi Sigurdsson, Davy Klaassen and Nikola Vlasic already at the club, his departure may not leave the Everton manager scrambling to sign a replacement.More news: Zuma 'like Saddam Hussein in a hole' after top court ruling