The 22 year old currently plays for Italian Serie B side Brescia but was born and raised in Manchester.
Scottish club Celtic are reported to be the front-runners but the playmaker is also said to want a return to the Premier League.
Benali had a contract with Manchester City before eventually being loaned out to Rochdale where he made only two appearances.
Everton may try to hijack Celtic’s bid for him though the Toffees will also have to fight off competition from Italian Serie A sides Sassuolo and Torino.