Watford owner Gino Pozzo has agreed in principle to sell Granada to Chinese firm Link International Sports.

The deal is worth a reported €37million and will see the Pozzos, who bought the Spanish club in 2009, concentrate on their ownership of Udinese and Watford.

Granada avoided relegation from La Liga last season after finishing in 16th place.

Media Base Sport has acted to broker the takeover deal with Link International Sports.

A statement released by Media Base Sport said: “Gino Pozzo and Jiang Lizhang have reached an agreement for the Chinese company Link International Sports Limited to acquire Granada CF.

“After the consolidation of Granada in the Primera Division, and after studying the sporting and economic project presented by Jiang Lizhang, Gino Pozzo informs that, ahead of the relevant due diligence and the approval of the Superior Council of Sports (CSD), the agreement will become official in the coming weeks.”

The Hornets signed Abdoulaye Doucoure and Adalberto Penaranda in the January transfer window with the pair spending the end of the season on loan at Granada. 

Watford are also expected to confirm the signing of Granada striker Isaac Success this summer.

But according to a Spanish source future deals between Watford and Granada for players could still continue despite the takeover.