Lewis McGugan, a free agent after his contract with Nottingham Forest expired, has become Watford’s second signing of the summer after penning a three-year deal.
The 24-year-old midfielder will head out to Italy to join the Hornets’ pre-season training camp after seven years with the Reds.
A product of Forest’s youth system, McGugan made his debut in 2006 and went on to play 230 times, scoring 44 goals.
Head coach Gianfranco Zola said: “Lewis is a very talented player and an excellent signing for this football club.
“He will give strength to our squad and I’m sure our supporters will be excited to see what he can do in a Watford shirt.”
Separately, Forest are believed to be in talks with Dorus De Vries, the Wolves goalkeeper, who is set to leave Molineux on a free transfer.