The Hornets are hoping to re-sign last season's top scorer Matej Vydra and are in negotiations with other potential signings, the Watford Observer understands.
Vydra scored 22 goals in 47 games during the 2012/13 campaign as the Golden Boys just missed out on automatic promotion to the Premier League and then lost the play-off final, when the striker was forced off injured at half-time.
The 22-year-old's form earned him a new five-year contract with parent club Udinese last summer and a loan move to the Premier League, with West Bromwich Albion.
However, the Czech Republic international has only scored three goals in nine starts and 14 substitute appearances in all competitions.
Vydra enjoyed his time at Watford and with the Pozzo family controlling both Udinese and the Hornets, we understand the owners are keen for the striker to return as the Championship club attempt to secure Premier League football at the third attempt.
West Ham United, Swansea City and Tottenham Hotspur were among Vydra's suitors last summer but another loan move to a Premier League club appears unlikely.
And with the player's value declining over the last 12 months, and another four years on his Udinese contract, it also seems unlikely Vydra will be allowed to leave for a non-Pozzo owned club on the cheap.
Watford endured a difficult campaign as they lost their final four matches to finish in the bottom half of the table in 13th - 12 points below the play-off places.
The Hornets are keen to complete the majority of their business as early as possible this summer and Vydra is one of several players already identified.
The Golden Boys are closing in on the permanent signing of loanee Daniel Tozser and the club are also in talks with the representatives of other transfer targets.
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