Watford are expected to announce the £3.5m signing of Adam Masina on July 1 after he completed a medical, Sky sources understand.
Sky Sports News reported last week that Watford had agreed a deal with Serie A club Bologna to sign the 24-year-old left-back, who had been of interest to Everton.
Watford had already agreed personal terms with the Italy U21 international.
He is set to become Watford's second defensive signing of the summer, with Marc Navarro having already joined on a five-year deal from Espanyol.
Gerard Deulofeu has also completed a permanent move to the club on a five-year deal from Barcelona for an initial £11.5m fee.
Masina, who is Morocco-born, made 35 appearances for Bologna last season.