Ramiro Funes Mori joins Villarreal on four-year deal.
The Argentina international, who missed out on a place in their World Cup squad, arrived at Everton from River Plate in September 2015 and made 67 appearances for the club, scoring five goals.
The 27-year-old missed the majority of last season due to a serious knee injury. He returned in the draw with Swansea on April 14 and made three more appearances before the end of the campaign.
Funes Mori had been linked with Middlesbrough and Mexican club Monterrey but Villarreal have won the race for his signature. He has signed a four-year deal with the club.
The centre-back becomes Villarreal's third summer signing after Cameroon international Toko Ekambi and striker Gerard Moreno.
He will train alongside ex-Arsenal playmaker Santi Cazorla, who is spending pre-season with his former club as he bids to regain full fitness following an Achilles operation.
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