The Republic of Ireland international has agreed a four-and-a-half-year contract with the Toffees.

The deal for the Carsley had looked dead on Thursday.

Coventry wanted �2m for him, but Everton offered only �1.4m, rising to �1.5m on appearances.

However, Everton improved their offer and Coventry accepted.

"It was Lee's choice to go and no-one at Highfield Road put him under any pressure at all," Coventry's website stated.

"Lee showed his desire to return to Premiership football by waving payments that in effect help Coventry get in excess of �2m for the transfer."

Carsley is likely to play against Arsenal at Goodison Park on Sunday.

Meanwhile, Everton have also acquired Aston Villa's David Ginola until the end of the season.