Everton boss David Moyes has been left frustrated at lack of transfer activity at Goodison Park over the close season.He said: "We cannot hide the fact that we need new players. Everybody knows it. I know it, the players know it - we have to get five or six players in before the season starts."
Moutinho, who impressed for Portugal at the European Championships, is a known target for Moyes who is eager to bolster his midfield.
The player himself is said to be keen on a move to the Premiership but it appears that Sporting Lisbon are unwilling to lower their valuation for the 21-year-old.
It is thought that Moutinho has a buy-out clause of around £20million in his contract which Everton are unwilling to meet.
A source at Everton said: "There's nothing he or we can do."
Moyes is concerned that his lack of depth in his Everton squad will hinder the team's progress as they look to improve on last season's fifth-placed finish.
He said: "There is not enough competition for the players to realise that if they play poorly they will not be selected. We are a long way away from where we think we are going to be, but that is due to several different circumstances.
"We are in a poor, poor situation regarding going forward"
Comments such as these have fuelled speculation that Moyes will walk away from Everton should the club not provide him with the finances to strengthen his side.
However, both Moyes and Everton chairman Bill Kenwright have moved to assure fans that the Scot is staying put.
