Watford remain in talks to sign Will Hughes and are close to agreeing a fee for the Derby County midfielder, the Watford Observer understands.

It was reported yesterday that negotiations to sign the England Under-21 midfielder were at an advanced stage, but we have been told that subsequent claims that a fee has been agreed are premature, although it now looks to be only a matter of time before terms are finalised.

The indications that a deal to bring Hughes to Vicarage Road will be concluded remain positive though, and we understand that suggestions of a fee of £4.5 million potentially rising to £8m are more accurate than reports of £8m potentially increasing to £10m.