The 22-year-old left Villarreal for Levante in September 2025 and scored six goals with two assists in 30 league appearances last season. He is under contract until the summer of 2029.
Etta Eyong had previously been linked with Barcelona, Manchester United, Arsenal and Real Madrid earlier in the year, with Fulham and Everton also credited with interest.
Jacobs reports that the two clubs are in contact and that Etta Eyong himself prefers a move to the Premier League. Everton are also said to have made an enquiry over the Cameroon international.
Levante are believed to want between £25m and £30m to sell the forward.
Ipswich finished second in the Championship last season and will play Premier League football next term, while Everton finished 13th in the top flight.
The competition for Etta Eyong's signature sets up an intriguing subplot to the summer window, with two English clubs at different points of their development both circling a forward who has made clear his priority is a move to England regardless of which level he initially arrives at.
Levante's valuation reflects the progress Etta Eyong has made since his free transfer from Villarreal less than a year ago, with the Cameroon international having previously turned down a January move to CSKA Moscow worth more than €25m in order to hold out for an opportunity in England.
Ipswich's pursuit comes as the newly-promoted club look to add proven goalscoring threat ahead of their return to the Premier League, while Everton's interest is understood to be linked to the possibility of selling forward Thierno Barry to RB Leipzig this summer, which would free up space and budget in their own attack.