Sources have told the Football Insider that Coady's medical has already begun as Everton look to swiftly wrap up a loan deal with an option to buy.
Everton have stepped up their hunt for the 29-year-old England defender after injuries marred their defeat to Chelsea on Saturday evening, and also because of rumours about West Ham starting to circle around their latest target.
Ben Godfrey has been ruled out for two to three months with a fractured tibia sustained just 10 minutes into the 1-0 defeat to Chelsea in their opening game, a situation worsened when injury-prone Yerry Mina limped off late in the second half.
Coady was dropped by Wolves manager Bruno Lage for the first time since April 2017 for Saturday's 2-1 defeat at Leeds as Max Kilman was paired with Nathan Collins in a four-man defence. He remained on the bench throughout the game.
With two of manager Frank Lampard's starting back three already out injured, the 29-year-old's new signing James Tarkowski's influence takes on even more significance.
"I'm more disappointed for the lads to get injured to be honest. It didn't look nice for Ben, hopefully it's not too bad - and hopefully the same for Yerry," said the defender.
"There is no more pressure for me - I have got to go out there and perform. For whoever comes in and plays there, it is the same for them.
"I am one of the older heads around here. It is quite a young side and I am fairly experienced, I have played quite a few games at this level now, so I feel it's part of my job to go in there and to try and lead and guide and help people.
"Especially someone in my position because I can see all the pitch, so it is my job and it is something I really enjoy."