Goalkeeper Chris Lewington, who was on trial with Watford at their pre-season training camp in Italy, has joined League One side Colchester United.
The Hornets confirmed last week that the 25-year-old had travelled to Udine on trial but he has agreed a switch to the U’s and has penned a three-year deal.
Watford were also interested in Stevenage winger Luke Freeman and had made early enquiries about the player.
However, the 22-year-old switched from Boro to Bristol City last week and has penned a three-year deal.
The Hornets were also looking into a move for Derby County midfielder Jeff Hendrick but he has signed a new four-year contract with the Rams.
The 22-year-old was a regular for Derby last season, making 35 appearances despite missing a three-month period due to injury.
Watford have been monitoring a host of players throughout the summer including former midfielder Don Cowie and goalkeeper Matt Gilks.
However, Cowie is set to sign a new deal at Cardiff City while Gilks has joined former Golden Boys boss Sean Dyche at Burnley.