The Hornets are confident of completing a deal for Fiorentina midfielder Mario Suarez in the next few days, the Watford Observer understands.
Watford and the Serie A side have been in negotiations for almost a week but a deal is inching closer to being struck after talks were held over the weekend.
Suarez is understood to be keen on a switch to Vicarage Road and reuniting with Quique Sanchez Flores after the duo worked together at Atletico Madrid.
Liverpool, West Bromwich Albion and Gary Neville’s Valencia are also reportedly interested in the Spain international but Watford believe that, barring any last minute change of heart from Suarez, they will sign the 28-year-old.
The Hornets also remain interested in a deal for Tottenham Hotspur winger Andros Townsend.
Spurs will let the 24-year-old - who is understood to favour a switch to Vicarage Road - leave White Hart Lane this month but only if the price is right.