Watford are expected to complete the permanent signing of Ignacio Pussetto on Tuesday, with the Udinese winger set to undergo a medical.
The 24-year-old Argentine, who has made 12 Serie A appearances this season, is in line to become Watford's first signing of the January window.
Pussetto is due to join on a four-and-a-half-year contract from Udinese, who like Watford are owned by the Pozzo family, for around £7m - the same price the Italian club paid to sign him from Argentine side Huracan in July 2018.
He came off the bench in Udinese's 3-0 Serie A victory over Sassuolo, but is now closing in on joining up with Nigel Pearson's squad.
Watford have won 13 points from their last five league games and climbed out of the bottom three with a 3-0 win at Bournemouth on Sunday.
How to follow the January transfer window
Sky Sports will bring you the very latest news from the January transfer market with the return of three shows.
Start your day with Good Morning Transfers at 9am as our team of reporters bring you the latest news and insight. Transfer Talk then follows at midday delivering analysis of the biggest stories. Then join us at 7pm for the definitive round-up of the day's news with The Transfer Show.
Meanwhile, the Transfer Talk podcast will also be back at the turn of the year with more expert analysis from here and across the continent.
And as well as tuning into Sky Sports News, don't miss a thing with our dedicated Transfer Centre blog.