Watford’s first signing of the transfer window has been confirmed with the arrival of Gerard Deulofeu on loan for the remainder of the campaign.

Parent club Barcelona revealed agreement had been reached for the 23-year-old to move to Vicarage Road until June 30 and that the Hornets will cover the player's salary and a potential add on of €1 million.

The move had been expected following Spanish media reports that a deal had been agreed earlier this afternoon, and the former Everton loanee is set to train with Javi Gracia and his new teammates at London Colney for the first time tomorrow.

The Hornets subsequently confirmed the move, stating it had been completed before today's midday deadline which means their newest acquistion is eligible to face Stoke City in the Premier League on Wednesday night.

Deulofeu only returned to first club Barca in the summer after spending two seasons at Everton. Though the winger had struggled to make an impact at Goodison Park, he impressed while on loan at AC Milan to persuade Barca to take him back.

The four-time Spain international has made 17 appearances in all competitions for the La Liga leaders this season, scoring two goals, but has struggled for regular playing time at the Nou Camp.

Ousmane Dembele, who joined Ernesto Valverde's side for £135.5million deal from Borussia Dortmund in August, started ahead of the Barcelona graduate in the starting line-up until the France international suffered a serious hamstring injury which ruled him out for nearly four months and gave Deulofeu his chance.

However, Dembele's recent return from the sidelines and the signing of playmaker Philippe Coutinho from Liverpool in the January tranfer window has seen Deulofeu fall further down the pecking order.

That has prompted a return to England, where he will hope to add to his five goals in 62 appearances in Premier League football.