According to the Liverpool Echo, Everton's interest in Wigan's midfielder James McCarthy has "cooled" after Wigan chairman Dave Whelan has refused to budge from his valuation of the player.
But negotiations between the Blues and Wigan chairman Dave Whelan are believed to have reached an impasse, with the Latics owner insisting he won't budge on his £15m valuation for the player.
The ECHO understands that has prompted Everton to switch their focus elsewhere, with a move for Porto midfielder Fernando also being considered but not yet a done deal.
The Brazilian would require a work permit, which would have to be agreed before tonight's 11pm deadline.
While Martinez has not completely given up on McCarthy, it would require a significant u-turn from Wigan to revive a transfer which has been mooted all summer.
It's starting to look like it's going to be Fernando or nothing for Everton, even if they sell Marouane Fellaini on to Manchester United.
Not the best feeling really but there's still over six hours left.
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