The Hornets have agreed a deal with Ecuador full back Juan Carlos Paredes, the Watford Observer understands.
Watford have been confident of securing his signature for more than a month and we understand a move has now been agreed.
Paredes failed to report to training for Barcelona Sporting Club on Monday and the Ecuadorian club's president Francisco Hidalgo confirmed the player was likely to be fined.
Hidalgo claimed a deal has yet to be reached with Watford but we understand terms have been agreed with the player, although it is yet to be decided whether he will join the Hornets directly or via fellow Pozzo clubs Granada or Udinese.
Paredes, who turned 27 today, played every minute of his country's World Cup campaign, as they finished third in Group E.
Paredes, who can play across the backline, has spent the whole of his career in his native country, also featuring for Rocafuerte, Deportivo Cuenca and Deportivo Quito, where he won the league title in 2011.
Udinese, who like Watford are owned by the Pozzos, were keen on signing the player for more than six months and he reportedly attracted interest from clubs around Europe prior to the World Cup.