Danny Rose is undergoing a medical at Watford's training ground ahead of his expected move to the club.
The former Tottenham Hotspur defender is available on a free, with his contract expiring at the end of this month, and is due to sign a two-year deal.
Talks between the two parties progressed last week before an agreement was reached and the move should now be completed soon, pending today's medical.
The signing more or less spells the end of a possible return for Ashley Young, who is now in talks with Burnley.
Discussions took place with Watford over a potential move earlier this summer, but have since stalled.
New Inter boss Simone Inzaghi is understood to have told Young he has a place in his squad next season but the defender is still open to the idea of leaving Serie A, with his contract expiring this month.
Sources close to the player have said that assurances about playing time are playing an important part in his decision about where to play next.
For now it looks like the only full-back who will be returning to Vicarage Road will be Rose, who made seven appearances for the Hornets on loan back in 2009.
Elsewhere, Watford's interest in Queens Park Rangers midfielder Ilias Chair has been the subject of increased speculation recently.
While the Hornets are interested in the player, the Watford Observer understands there has been no formal contact between the two sides yet.
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