Everton have announced the appointment of Ronald Koeman as their new manager on a three-year deal.

Koeman, who had one year left on his contract with Southampton, was identified as the prime candidate to succeed Roberto Martinez despite speculation of host of other suitors.

OFFICIAL: #EFC is pleased to confirm the appointment of manager @RonaldKoeman on a 3-year contract! #WelcomeRonaldhttps://t.co/fDdNUsO9Mf

— Everton (@Everton) June 14, 2016

Everton sacked Martinez before the end of season following a disappointing Premier League campaign with the club finishing in the bottom half of the table.

The Spanish coach led Everton to the semi-finals of the FA Cup and Capital One Cup this season but was set free of his services after spending nearly three years at the Merseyside club.

Meanwhile, Koeman is reportedly set to earn £6 million per season at Everton and will be joined by his brother and assistant manager Erwin and fitness coach Jan Kluitenberg.

“I am very excited to be Everton manager. I believe in the club, in the team, in the fans and in our ability to achieve things in the future,” the 53-year-old said following his appointment.

“Everton is a club with a great history and real ambition and it is a proud feeling for me to be part of what we want to go and do, together with the chairman and Farhad Moshiri. I am looking forward to meeting everyone at the club and to preparing for a big season in the Premier League.”

It is reported that Everton have paid £5 million compensation to Southampton for the services of the former Netherlands defender

Everton chairman Bill Kenwright said: “We are really pleased to have secured the man who was our No 1 target from the moment we set out to appoint a new manager.

“Ronald has such a strong track record in the game, instantly commanding respect for what he achieved as a player and for his qualities and accomplishments as a manager.

The former Ajax, Benfica, PSV and Feyenoord manager arrived in the Premier League in 2014 following his appointment as the head coach of Southampton and led the Saints to break the club’s Premier League points record twice in his two-year spell on the south coast.