As per Il Mattino, the Toffees submitted a €45m bid for the player but it has been turned down.
It will be interesting to see if Everton come up with an improved offer for Allan in the coming weeks.
The Brazilian is up for sale this summer after falling out of favour at the club.
He was a key player for Napoli during Ancelotti’s time at the club and it is no surprise that the Italian wants to be reunited with the player at Everton now.
Everton could use a technically gifted midfielder like Allan and he would help them control games better.
Allan has proven his quality in Serie A and in the European competitions. He is also at an age where he can adapt to a different league quickly and make an immediate impact.
His quality and experience could improve Everton immensely next season.
If he joins the club, he would automatically be the best midfielder at Everton.
It remains to be seen if the two clubs can agree on a fee now.