Matej Vydra's season-long loan from Watford to Reading has been confirmed and there is a chance the striker may not return to Vicarage Road.

The Royals are understood to have paid a £2.5 million loan fee to land the Czech Republic international and will also cover the 23-year-old’s wages during his time at the Madejski Stadium.

Reading are also reported to have an option to sign Vydra for £10 million should they clinch promotion to the Premier League this season. 

The Royals’ current transfer record is the £2.5 million they paid to sign Emerse Fae in 2007. Vydra's loan fee alone matches that. 

Vydra only joined the Hornets on a permanent deal from Udinese earlier this summer following two successful loan spells at Vicarage Road.

However, he quickly fell out of favour with new Golden Boys head coach Quique Sanchez Flores and didn’t feature in any of the Hornets’ opening four Premier League fixtures.

The arrivals of Victor Ibarbo and Obbi Oulare at Watford today further decreased Vydra’s chances of first-team football and he opted to leave Vicarage Road and join up with Royals boss Steve Clarke for the second time in his career - the duo worked together two years ago at West Bromwich Albion.

Over the course of his time with the Hornets, Vydra has made 93 appearances and has scored 38 goals. He also won the 2012/2013 Championship player of the year award.