Fernandes has played for the Portuguese national side

The 20-year-old spent the first six months of the season on loan at Premiership rivals Portsmouth and joins Everton on a six-month deal.

"We are pleased to add him to the squad and we look forward to seeing him in action in the months ahead," said Toffees manager David Moyes.

The highly-rated Fernandes is under contract with Benfica until 2011.

Fernandes underwent a medical at Everton's Bellefield training ground last week.

He played 12 games for Pompey, scoring once in the Carling Cup, but Pompey were priced out of a permanent deal.

Fernandes has also made two appearances for Portugal's national team.