The two clubs have agreed an initial loan spell for the striker, until the end of the season with Los Che being able to make the deal permanent at that point.
Spanish media outlet Cadena Cope reports the two sides are not far apart in their valuations with the Premier League club demanding £9m, while Valencia are offering £7m.
It’s expected the deal with be thrashed out in time for Ramirez to make his debut when La Liga returns to action after the Christmas break.
Ramirez cost the Toffees £5.2m when he joined from Malaga during the summer but has struggled to settle on Merseyside. In six Premier League appearances, he failed to find the net with Everton slumping into the bottom half of the table.
His only goal came in the 1 – 5 home drubbing at the hands of Atalanta in the disastrous Europa League campaign.
As the club’s fortunes revive, Sandro finds himself a permanent fixture on the bench.
Everton rejected West Ham’s overtures for the striker last month, allowing Valencia a free run at signing a player capped 26 times by Spain at junior levels.