Liverpool's Champions League opponents Galatasaray were leading the chase for the 29-year-old who has only managed 45 appearances for Everton since his move to Goodison in September 1999.
Xavier, who cost Everton £1.6million, has been offered a 4-year-contract.
The proposed signing looks like another blow for Vegard Heggem who amazingly continues to be ignored, despite returning from injury.