Dyche succeeded Frank Lampard in January 2023 and has kept Everton in the top flight, but his exit comes with them sitting 16th in the Premier League, just above the relegation zone.
Everton are understood to want a replacement who has Premier League experience, which presents a challenge given the current situation of the club.
Moyes had an 11-year spell in charge of Everton from 2002 to 2013, managing the club for more than 500 games and guiding them to nine top-eight finishes.
Currently, with Moyes out of management after losing his job at West Ham, he expressed, "I don't want to be at the bottom of the league and fighting relegation which I have had a few times."
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