The South-West corner of Vicarage Road Stadium should be completed by July next year, Watford chief executive Scott Duxbury has said.
Work on the development started almost five years ago but the Hornets lacked funds and it remains unfinished.
However, Duxbury said: “We are in very advanced discussions with our partner, who at this time would like to remain anonymous.
“We would like to conclude contracts for that development by the end of November or the beginning of December, with working commencing in January or February and it being available by June or July next year.
“That would include moving the changing rooms and two new hospitality developments as well. That is our plan for this year and we are close to concluding those contracts.”
Duxbury was speaking at last Thursday’s fans’ forum where he once again reiterated the club’s average attendance would need to reach around 15,000 if they were to redevelop the East Stand.
The chief executive also expressed his desire to move the family section out of the Vicarage Road Stand and replace it with cash turnstiles.
Duxbury said: “What I would like to do next season is potentially move the Family Stand to the Lower Rous and have a look at maybe offering some unreserved seating and cash turnstiles.
“I do think there is a demand for that and we could put that where the Family Stand currently is. I would like to do that at the start of next season.”
There was a rumour circulating Watford were planning to increase their season-ticket prices by 30 per cent from next season.
But when asked about it at the fans’ forum, Duxbury replied: “Would you pay 30 per cent more? Ok, then that is a no. We haven’t even looked at season-ticket prices. I want to increase attendances, not penalise those who already come so I wouldn’t anticipate an increase.”
Vicarage Road Stadium is at the heart of the proposed multi-million pound health campus in West Watford.
The plans include the regeneration of Watford General Hospital, the creation of hundreds of new homes and potentially 1,600 new jobs in the area. A new access road to the M1 is also expected.
On the impact of the health campus in relation to Watford FC, Duxbury said: "Potentially it could be fundamental.
"Effectively, the town centre of Watford would shift towards the football club. The front of the stadium would effectively flip and we might be able to have on-site car parking for the first time.
"It could be huge for the club and we are making sure we are in the discussions, we are party to all the relevant decision making and as and when the development occurs, and the various phases are implemented, you can rest assured the club will be in prime position to take advantage.
"The potential of that development is not lost upon us and could be really beneficial for the football club."