Toffees had been hoping youngster would replace the departing Jelavic.
Premier League outfit Everton now face stiff competition from Portuguese giants Benfica to sign Standard Liege front man Michy Batshuayi in the January transfer window, according to reports in the Daily Mirror.
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Toffees head coach Roberto Martinez had been hoping to be able to tie up a deal for the Belgium Under-21 international before the winter window slammed shut again for business for the season at the end of the month.
The Spaniard is currently on the lookout for a replacement striker for the Hull City-bound Nikica Jelavic, but now Everton reportedly face competition for Batshuayi from Benfica, who themselves are keen on the 20-year-old.