Ignacio Pussetto is expected to remain with Udinese where he is currently on loan from Watford, the Watford Observer understands.
The Argentinian winger joined the Hornets during the January transfer window last year, but struggled to get much game time, making just seven appearances as Watford were relegated.
He made two further appearances at the beginning of the recently-concluded campaign under former head coach Vladimir Ivic, including the 0-0 draw with relegated Sheffield Wednesday and the 3-1 Carabao Cup defeat to Newport County.
He then returned to Udinese on loan before the end of the extended summer transfer window and went on to score four times from 13 appearances.
In January he picked up an injury and was ruled out for the rest of the season, but is expected to have recovered by the summer.
Last month, he told La Gazzetta dello Sport he wanted to stay in Italy, even if Watford sealed promotion, which is now expected to happen.
"I’m not the one who decides, but I’d like to stay here. The path taken by Udinese is the right one," he said at the time.
"It was my first European stop and I immediately felt at ease. I play with friends, I feel like I’m with my family. Udine reminds me so much of my hometown, Canada Rosquin. And a quiet city and the club is well organised. And I prefer Serie A to Premier League, even if Watford can go back."
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