Joao Virginia, 18, joined Arsenal from Benfica in 2015 but never featured for the first team. However, he is considered a promising talent who played for the club’s under-23s and was also in Portugal’s squad for the 2016 Olympics and this summer’s U19 European championship.
“We would like to thank Joao for his contribution to the club and wish him well for the future,” Arsenal said in a statement.
“I am really happy to be at Everton,” Virginia told the official Toffees website.
“I hope to learn a lot from the goalkeepers here, Jordan Pickford, who had a great season and World Cup and Maarten Stekelenburg, who is very experienced too. This is a great opportunity for me.”
Virginia is Everton’s third signing of the summer after Richarlison and Lucas Digne.