The Toffees were linked with a move for Zaha all summer but Palace have refused to sell the winger.
It seems that Iwobi is the backup target and Everton have now splashed out on him.
According to the reliable David Ornstein from the BBC, the Toffees will pay around £35-40m for his services.
— David Ornstein (@bbcsport_david) August 8, 2019
Iwobi has fallen down the pecking order at Arsenal after the singing of Pepe and a move to Everton is ideal for him.
He will play regular first-team football under Marco Silva and the Everton boss will help him improve as a footballer.
Everton needed to improve on their wide players and Iwobi should prove to be an upgrade on Theo Walcott next season.
The 23-year-old is one of the best dribblers in the league and he will add more creativity to the side.
It will be interesting to see how he adapts at Everton now. If he manages to settle in quickly, he could make a big impact for Silva’s side.
Everton have already improved their attack with the signing of Moise Kean and Iwobi’s arrival will complete their attacking unit for the next season.