The winger had been looking for a move out of the first division, and Sunderland is in need of money to stem the flow of debt.
Everton manager David Moyes will look to Kilbane to provide his team with greater width, although he is likely to occupy a spot on the bench for the time being.
Kevin Kilbane, 26, was in the final year of his contract and would have been likely to leave in the summer in any case.
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