The Mirror reports that Moyes is keen to bring in the midfielder on loan for a season.
Real Madrid boss Jose Mourinho will allow Canales to leave the club this summer in order to get first-team football.
Everton tried to sign Canales from Racing Santander a year ago, but the midfielder ended up moving to Real Madrid.
Everton face competition from Wolfsburg for the 20-year-old’s signature.
