Cahill, 32, made 278 appearances and scored 68 goals for the Toffees since arriving from Milwall in 2004. The Australian international has scored 24 goals for his country in 55 appearances. Cahill had two years remaining on his contract with Everton.
The deal for Cahill will be complete once he agrees to terms on a contract and passes a physical. Cahill is set to become the team's third Designated Player, Thierry Henry and Rafael Marquez are the others.
The Red Bulls released a statement in which they did not confirm the transaction. It read:
"We are aware of Everton’s statement regarding midfielder Tim Cahill and our club. However, we have no comment at this time regarding him or any other non-New York player."
The Red Bulls have made two other recent moves recently, trading for LA Galaxy goalkeeper Bill Gaudette and Vancouver Whitecaps striker Sebastien Le Toux. Both players have paid immediate dividends for New York. Le Toux has one goal and one assist in three matches while Gaudette has recorded two clean sheets and is 2-0-1 in three matches.