Watford are close to landing Derby County's highly-rated midfielder Will Hughes, in a deal which could rise to £8m, according to Sky sources.
Sky Sports News HQ understands an agreement between the two clubs is close but a medical is not imminent.
We understand some elements of the deal are in place between the two clubs, although the final transfer figure and payment schedules are still to be agreed. It is understood personal terms are unlikely to prove a problem.
This is due to the player currently being on international duty in Poland with England's U21s at the European Championships.
Hughes was one of the country's most promising teenagers when he made his debut for Derby as a 16-year-old back in 2011.
The 22-year-old from Weybridge was coveted by a number of Premier League clubs, including a reported a £15m move to Liverpool.
However, he suffered a cruciate ligament injury at Bolton during the opening game of the 2015/16 season and was sidelined for eight months.
But he returned to good form last season and took his tally of goals for the Rams to nine in 165 appearances.