Phil McNulty, chief football writer
Cottagers boss Marco Silva is a big admirer of the 27-year-old, who he brought to Everton in a £34m deal during his time at Goodison Park - also on deadline day - in August 2019.
Iwboi has one year left on his current contract with no indications he will agree an extension, so Everton may well cash in now as they work within a limited budget and try to put together last day deals.
One stumbling block may be the fee, with the Toffees understood to want between £15m and £20m for Iwobi, who currently faces a spell on the sidelines with a hamstring injury sustained in the 4-0 defeat at Aston Villa.
Discussions are ongoing.