The American ‘keeper was linked with a move back to the U.S in January after coming under intense pressure for his questionable performances this season.
The 37-year-old has reportedly agreed terms with Colorado and will head to the MLS, the league where he made his name, in May.
It is believed the no.24 will earn $3million a season as the Rapids’ New Designated Player.
Howard joined Everton from Manchester United in 2006 on an initial loan deal and was the first-choice goalkeeper at Goodison Park for the best part of a decade.
The former New Jersey MetroStars stopper will be remembered for his heroics in the 2009 F.A Cup semi-final, when he saved two penalties to help Everton reach their first final in 14 years.
Howard’s Everton career has turned sour in recent months and he lost his place in the starting line-up to Joel Robles in February, but Evertonians will remember the American in a good light after years of impressive and loyal service.