The 25-year-old has scored 10 goals in 21 appearances for Liege so far this season having spent previous spells at the likes of Lyon, Parma and Inter Milan.
Everton are understood to have had an initial £8.5m offer turned down by the Belgian outfit, but have since seen an improved bid of £10.4m accepted.
The Guardian reports that the Algeria international is set to fly to Merseyside to undergo a medical with the Toffees ahead of signing a three-year deal.
Belfodil was not selected in Algeria's squad for the Africa Cup of Nations, leaving him free to conduct talks with Everton.
Ronald Koeman's side have already signed Ademola Lookman from Charlton Athletic this month and are on the verge of completing a deal for Morgan Schneiderlin, although they are understood to have seen a £15m bid for Atalanta midfielder Franck Kessie rejected.