The player has been linked with Everton all summer, but his current club, Roma, have until recently been banned from transfers.
With this restriction lifted, and both Allesandro Pistone and Gary Naysmith injured, Ferrari looks set to move. Everton will have the option to make the move permenant for £3.75m.
"Ferrari will play on loan at Everton," his representative Giovanni Corci told Italian radio station Radio Incontro. "We are only waiting for club administrator Rosella Sensi to ratify this move."