Watford are poised to announce their fifth summer signing after agreeing a deal to sign Etienne Capoue from Tottenham Hotspur.

There has been extensive speculation linking the midfielder with a move to Vicarage Road and the Watford Observer understands all terms have now been agreed and Capoue’s switch is set to be confirmed early next week.

The 26-year-old will follow Sebastian Prodl, Giedrius Arlauskis, Matej Vydra and Jose Holebas in moving to Vicarage Road as Watford continue the process of building a squad strong enough to enable them to survive in the Premier League.

It has been reported the Hornets made a bid of £5.7 million for Capoue and if this is what has been accepted by Spurs, it would shatter the club’s transfer record of £3.25 million paid for Nathan Ellington in 2007.

Capoue moved to White Hart Lane for £9 million two years ago but since then has made just 19 Premier League starts plus a further five appearances off the bench, scoring one goal. His last appearance for Spurs came in January's 2-1 FA Cup defeat at the hands of Leicester City.

Prior to his move to north London, Capoue enjoyed six years with Toulouse and won the first of his seven French caps against Uruguay in a friendly August 2012.

Capoue may not be the only Spurs player to move to Vicarage Road as Watford continue to be heavily linked with Benjamin Stambouli.

Another defensively minded midfielder, the 24-year-old joined Tottenham at the start of last season from Montpellier.