Liverpool striker Jerome Sinclair has agreed a deal to join Watford this summer, a source close to the player has told ESPN FC.
Watford have held a long-term interest in Sinclair and they had an offer for the 19-year-old rejected during the winter transfer window.
Sinclair looks certain to leave Liverpool this summer upon the expiration of his contract with the player refusing to sign a new deal at Anfield.
He is highly regarded at Anfield but, despite scoring on his full debut in the FA Cup against Exeter in January, the player is concerned about his prospects of regular first-team football at Liverpool.
Watford boss Quique Sanchez Flores is looking to add to his attacking options for next season as he looks to provide competition for first-choice strikers Odion Ighalo and Troy Deeney.
A source told ESPN FC that a deal is all but done with Watford and that the forward is expected to sign a three-year deal at Vicarage Road at the end of the season.
Liverpool will be entitled to compensation from Watford due to Sinclair's age and the matter could go to a tribunal if a fee cannot be agreed between the two clubs.