The Hornets are closing in on the permanent signing of Daniel Tozser, the Watford Observer understands.

The Golden Boys refused to comment on their potential interest in the player but we understand from other sources they have held positive talks with Tozser's representatives and Genoa.

Tozser, who has two years left on his Genoa contract, has also expressed a desire to stay at Vicarage Road publicly after joining the club on loan in January.

The 28-year-old has only missed one game since he joined the Golden Boys, featuring for the full 90 minutes in his 20 outings, despite arriving at the club having not played competitively since May 2013.

Tozser excelled during his first couple of months at Watford before his form dipped, with club staff suggesting tiredness was a contributing factor.

The holding midfield role had been a problem position for Watford prior to the Hungarian international's arrival, after Jonathan Hogg and John Eustace left the club last summer.

Earlier this week Tozser told NSO TV: "I am here on loan until June 30, but the club have indicated that they have started to have talks with Genoa about staying on.

"But it's not that simple because the two clubs have to agree about me and also with me. I'd like to stay because the club's aim is to gain promotion to the Premier League."

Tozser started his career at Debrecen and joined Galatasaray in his teens but was unable to break into the team at the Turkish club.

He returned to his native Hungary with Ferencváros and made 60 appearances during his two-year stay at the Budapest club.

AEK Athens signed the player in 2006, where he tasted Champions League football for the first time. He made 56 outings and scored three goals during two years at the club.

In 2008 Belgian side Genk reportedly paid around €1.5m to sign the defensive midfielder, who can also play on the left side.

During his four-year stay at the club, he made 159 appearances and scored 22 goals, again featuring in the Champions League.

Genoa beat a few Italian clubs to sign Tozser in 2012 but he struggled to hold down a regular place after making 22 appearances last season and was only been an unused sub on five occasions this season.

The player has made 20 appearances for Hungary. His last appearance came in 2011 but we understand he is likely to earn a call-up for the match with Denmark on May 22.