Watford remain interested in PSV Eindhoven midfielder Gaston Pereiro and are waiting for the player to decide his future, the Watford Observer has been told.

Last month, it was reported that Gino Pozzo and Filippo Giraldi made contact with the Uruguayan's agent about the possibility of bringing him to Vicarage Road.

Pereiro has only one year remaining on his PSV contract and has as of yet been unwilling to sign an extension, meaning he could be available at a lowered price.

However, the midfielder has been at the Copa America during the summer and is currently on holiday, making any potential deal more difficult to make.

Pereiro's agent, Paco Casal, is believed to be considering all options for his player before the pair make a decision and open any discussions.

AC Milan are also thought to be interested in signing the 24-year-old, who has scored 47 goals from 146 games since joining the Dutch club in 2015.

Should he see the Premier League as a good option for his future, reports from Gianluca Di Marzio last month suggest he would be available for a fee in the region of £18million.