Watford target Marek Stech has returned to first club Sparta Prague on a three-year contract.
We understood the Hornets had made a move to sign the the 24-year-old goalkeeper, whose contract at Yeovil Town was due to expire at the end of June, and were rated as favourites to complete the capture of the player.
Stech had been linked with a return to his first club but the move was dependent on Sparta goalkeeper Tomas Vaclik leaving the club.
Vaclik has since signed for Swiss outfit FC Basel, paving the way for Stech's return to the Czech Republic.
Speaking to Sparta's website, Stech said: "It's a wonderful feeling to be back in Sparta. It's nice to be back this summer and I am very much looking forward to the new challenge."
Earlier in the week, Stech had told a Czech news agency CTK he would leave the Glovers when his contract expired but was leaving his options open.
"My Yeovil contract expires in a month and I am most likely not staying there as it would not be good for my future," said Stech. "I would like to stay in the Championship or even get into the Premier League, that's my dream.
"I don't want to go to a club where I would be a substitute again. When I joined West Ham in 2006 I was very young and spent three seasons as cover for Robert Green.
"He was basically not having any injuries, so I only appeared in three fixtures. My heart would be 100 per cent for the return to Sparta because I spent a lot of time there and I know the club.
"On the other hand, Watford is in the Championship. They have a chance to get into the play-offs and into the Premier League, which is excellent.
"I have been in England for almost eight years now, I have a family and I'm almost at home there. If it was possible, I would like to stay there. I would not be against moving elsewhere either, though," added Stech.
Stech moved to England from Sparta in 2006 to join West Ham United but left Upton Park without making a league appearance for the Hammers before signing for Yeovil on a free transfer in 2012.